The Financial Services Act 1986 (Restriction of Exemption) Order 1999

Explanatory Note

(This note is not part of the Order)

The Order restricts the exemption for which section 45(1)(j) of the Financial Services Act 1986 makes provision for the managers of common investment funds established under section 22 of the Charities Act 1960 or section 24 of the Charities Act 1993. Subject to the transitional provision for which article 3 of the Order makes provision, its effect is that the exemption will only apply to the manager of a fund the trusts of which prevent property being transferred to the fund except by or on behalf of a charity the charity trustees of which are also the trustees appointed to manage the fund. This type of fund is commonly known as a pooling scheme fund.

Article 3 of the Order contains a transitional provision. The provision means that the manager of any fund other than a pooling scheme fund which is established by a common investment scheme before the date on which the Order comes into force will continue to be exempt until the end of the period of six months beginning with the date on which the Order comes into force unless a further common investment scheme takes effect in relation to the fund before the end of that period.