Part VI

Funds in Court

Common investment schemes.
42
1
The Lord Chancellor may continue to make schemes (“common investment schemes”) establishing common investment funds for the purpose of investing funds in court and money held by any person who in accordance with subsection (5)(b) below may hold shares in common investment funds.
2
A common investment scheme shall provide for the fund thereby established to be under the management and control of an investment manager appointed by the Lord Chancellor.
3
A common investment scheme shall make provision for the investment by its investment manager in accordance with the provisions of this section of funds in court transferred to the fund under rules made by virtue of section 38(7) above and of any sums of money transferred to the fund by persons who in accordance with subsection (5)(b) below may hold shares in the fund.
4
A common investment scheme shall make provision—
a
for treating the fund established by it as being divided into shares; and
b
for treating a sum invested in the fund as being represented by a number of shares determined by reference to that sum and the value of the fund at the time the investment was made.
5
Shares in a common investment fund—
a
shall be allotted to and held by the Accountant General and
b
may be allotted to and held by the Accountant General of the Court of Judicature of Northern Ireland and any other person authorised by the Lord Chancellor.
6
Where a person is authorised under subsection (5) above to hold shares in a common investment fund—
a
he may invest trust money in shares in the fund without obtaining and considering advice on whether to make such an investment; and
b
he may invest trust money in a common investment fund of which he is the investment manager.
7
Moneys comprised in the fund established by a common investment scheme may, subject to the provisions of the scheme, be invested by the investment manager of the fund in any way in which he thinks fit, whether or not authorised by the general law in relation to trust funds.
8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
The investment manager of a fund established by a common investment scheme shall not be required or entitled to take account of any trusts or equities affecting any share in the fund whether or not he is also a trustee of any such trust.
10
The investment manager of a fund established by a common investment scheme shall be remunerated at such rates and in such manner as the Lord Chancellor shall with the concurrence of the Treasury determine.
11
The salary or remuneration of an investment manager and his officers and such other expenses of executing his office or otherwise carrying this Part of this Act into effect as may be sanctioned by the Treasury shall be paid out of moneys provided by Parliament.
12
There shall be charged in respect of the running of a common investment scheme such fees, whether by way of percentage or otherwise, as the Lord Chancellor shall with the concurrence of the Treasury fix and such fees shall be collected and accounted for by such persons, and in such manner, and shall be paid to such account, as the Treasury direct.
13
There shall be retained or paid out of a fund established by a common investment scheme any expenses which could be so retained or paid out of trust property if the investment manager of the fund were a trustee and such expenses shall be retained or paid in the same way as and in addition to fees charged in respect of the running of the scheme.
14
Fees and expenses recovered under this section shall be paid into the Consolidated Fund.
15
Money and securities held by an investment manager of a fund established by a common investment scheme shall vest in his successor in office without any assignment or transfer.
16
The power conferred by subsection (1) above to make a common investment scheme shall include the power to vary or revoke such a scheme.
S. 42: Pt. VI (ss. 38-48) applies to Scotland only to the extent specified in s. 48
S. 42(1) power exercised by S.I. 1991/1209
Words in s. 42(5)(b) substituted (1.10.2009) by Constitutional Reform Act 2005 (c. 4), ss. 59(5), 148(1), Sch. 11 para. 27(2); S.I. 2009/1604, art. 2(d)
S. 42(6)(a) substituted (1.2.2001) by 2000 c. 29, s. 42(2), Sch. 2 Pt. II para. 44 (with s. 35); S.I. 2001/49, art. 2
S. 42(8) repealed by Financial Services Act 1986 (c. 60, SIF 69), s. 212(3), Sch. 17 Pt. I
Pt. VI applies to Scotland only to the extent specified in s. 48