The Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001

Enterprise initiative schemes U.K.

2.—(1) Arrangements do not amount to a collective investment scheme if—

(a) the property to which the arrangements relate (other than cash awaiting investment) consists of shares;

(b) the arrangements constitute a complying fund;

(c) each participant is entitled to a part of the property to which the arrangements relate and—

(i) to the extent that the property to which he is entitled comprises relevant shares of a class which are admitted to official listing in [F1 the United Kingdom or] an EEA State or to dealings on a recognised investment exchange, he is entitled to withdraw it at any time after the end of the period of five years beginning with the date on which the shares in question were issued;

(ii) to the extent that the property to which he is entitled comprises other relevant shares, he is entitled to withdraw it at any time after the end of the period of seven years beginning with the date on which the shares in question were issued;

(iii) to the extent that the property to which he is entitled comprises shares other than relevant shares, he is entitled to withdraw it at any time after the end of the period of six months beginning with the date on which the shares in question ceased to be relevant shares; and

(iv) to the extent that the property comprises cash which the operator has agreed (conditionally or unconditionally) to apply in subscribing for shares, he is entitled to withdraw it at any time; and

(d) the arrangements would meet the conditions described in paragraph 1(c) were it not for the fact that the operator is entitled to exercise all or any of the rights conferred by shares included in the property to which the arrangements relate.

(2) In sub-paragraph (1)—

(a) “shares” means investments of the kind specified by article 76 of the Regulated Activities Order (shares etc.) and shares are to be regarded as relevant shares if and so long as they are shares in respect of which neither—

(i) a claim for relief made in accordance with section 306 of the 1988 Act has been disallowed; nor

(ii) an assessment has been made pursuant to section 307 of the 1988 Act withdrawing or [F2 reducing] relief by reason of the body corporate in which the shares are held having ceased to be a body corporate which is a qualifying company for the purposes of that Act;

(b) “complying fund” means arrangements which provide that—

(i) the operator will, so far as is practicable, make investments each of which, subject to each participant’s individual circumstances, qualify for relief by virtue of Chapter III of Part VII of the 1988 Act; and

(ii) the minimum contribution to the arrangements which each participant must make is not less than £2000.

Textual Amendments

F1 Words in Sch. para. 2(1)(c)(i) inserted (31.12.2020) by The Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/325), regs. 1(2), 51(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F2 Word in Sch. para. 2(2)(a)(ii) substituted (13.4.2015) by The Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2015 (S.I. 2015/754), arts. 1(2), 2(3)

Commencement Information

I1 Sch. para. 2 in force 1.12.2001 see reg. 1 and S.I. 2001/3538, art. 2