Part XVII Collective Investment Schemes

Chapter III Authorised Unit Trust Schemes

Powers of intervention

F1258AF1Winding up or merger of master UCITS

1

Subsection (2) applies if a master UCITS which has one or more feeder UCITS which are authorised unit trust schemes is wound up, whether as a result of a direction given by the Authority under section 257, an order of the court under section 258, rules made by the Authority or otherwise.

2

The Authority must direct the manager and trustee of any authorised unit trust scheme which is a feeder UCITS of the master UCITS to wind up the feeder UCITS unless—

a

the Authority approves under section 283A the investment by the feeder UCITS of at least 85% of the total property which is subject to the collective investment scheme constituted by the feeder UCITS in units of another UCITS or master UCITS; or

b

the Authority approves under section 252A an amendment of the trust deed of the feeder UCITS which would enable it to convert into a UCITS which is not a feeder UCITS.

3

Subsection (4) applies if a master UCITS which has one or more feeder UCITS which are authorised unit trust schemes—

a

merges with another UCITS, or

b

is divided into two or more UCITS.

4

The Authority must direct the manager and trustee of any authorised unit trust scheme which is a feeder UCITS of the master UCITS to wind up the scheme unless—

a

the Authority approves under section 283A the investment by the scheme of at least 85% of the total property which is subject to the collective investment scheme constituted by the feeder UCITS in the units of—

i

the master UCITS which results from the merger;

ii

one of the UCITS resulting from the division; or

iii

another UCITS or master UCITS;

b

the Authority approves under section 252A an amendment of the trust deed of the scheme which would enable it to convert into a UCITS which is not a feeder UCITS.