Part XVII Collective Investment Schemes
Chapter V Recognised Overseas Schemes
Individually recognised overseas schemes
I1272 Individually recognised overseas schemes.
C11
The F1FCA may, on the application of the operator of a collective investment scheme which—
a
is managed in a country or territory outside the United Kingdom,
b
does not satisfy the requirements prescribed for the purposes of section 264, F5and
F6c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d
appears to the F1FCA to satisfy the requirements set out in the following provisions of this section,
make an order declaring the scheme to be a recognised scheme.
2
Adequate protection must be afforded to participants in the scheme.
3
The arrangements for the scheme’s constitution and management must be adequate.
4
The powers and duties of the operator and, if the scheme has a trustee or depositary, of the trustee or depositary must be adequate.
5
In deciding whether the matters mentioned in subsection (3) or (4) are adequate, the F1FCA must have regard to—
a
any rule of law, and
b
any matters which are, or could be, the subject of rules,
applicable in relation to comparable authorised schemes.
6
“Comparable authorised schemes” means whichever of the following the F1FCA considers the most appropriate, having regard to the nature of scheme in respect of which the application is made—
a
authorised unit trust schemes;
F2aa
authorised contractual schemes which are co-ownership schemes;
ab
authorised contractual schemes which are partnership schemes;
b
authorised open-ended investment companies;
F3c
any two or more of the kinds of collective investment scheme mentioned in paragraphs (a) to (b).
7
The scheme must take the form of an open-ended investment company or (if it does not take that form) the operator must be a body corporate.
C28
The operator of the scheme must—
a
if an authorised person, have permission to act as operator;
b
if not an authorised person, be a fit and proper person to act as operator.
C29
The trustee or depositary (if any) of the scheme must—
a
if an authorised person, have permission to act as trustee or depositary;
b
if not an authorised person, be a fit and proper person to act as trustee or depositary.
10
The operator and the trustee or depositary (if any) of the scheme must be able and willing to co-operate with the F1FCA by the sharing of information and in other ways.
11
The name of the scheme must not be undesirable or misleading.
12
The purposes of the scheme must be reasonably capable of being successfully carried into effect.
13
The participants must be entitled to have their units redeemed in accordance with the scheme at a price related to the net value of the property to which the units relate and determined in accordance with the scheme.
14
But a scheme is to be treated as complying with subsection (13) if it requires the operator to ensure that a participant is able to sell his units on an investment exchange at a price not significantly different from that mentioned in that subsection.
15
Subsection (13) is not to be read as imposing a requirement that the participants must be entitled to have their units redeemed (or sold as mentioned in subsection (14)) immediately following a demand to that effect.
I2273 Matters that may be taken into account.
For the purposes of subsections (8)(b) and (9)(b) of section 272, the F1FCA may take into account any matter relating to—
a
any person who is or will be employed by or associated with the operator, trustee or depositary in connection with the scheme;
b
any director of the operator, trustee or depositary;
c
any person exercising influence over the operator, trustee or depositary;
d
any body corporate in the same group as the operator, trustee or depositary;
e
any director of any such body corporate;
f
any person exercising influence over any such body corporate.
C3I3274 Applications for recognition of individual schemes.
1
An application under section 272 for an order declaring a scheme to be a recognised scheme must be made to the F1FCA by the operator of the scheme.
2
The application—
a
must be made in such manner as the F1FCA may direct;
b
must contain the address of a place in the United Kingdom for the service on the operator of notices or other documents required or authorised to be served on him under this Act;
c
must contain or be accompanied by such information as the F1FCA may reasonably require for the purpose of determining the application.
3
At any time after receiving an application and before determining it, the F1FCA may require the applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the application.
4
Different directions may be given, and different requirements imposed, in relation to different applications.
5
I4275 Determination of applications.
C41
An application under section 272 must be determined by the F1FCA before the end of the period of six months beginning with the date on which it receives the completed application.
2
The F1FCA may determine an incomplete application if it considers it appropriate to do so; and it must in any event determine such an application within twelve months beginning with the date on which it first receives the application.
3
If the F1FCA makes an order under section 272(1), it must give written notice of the order to the applicant.
I5276 Procedure when refusing an application.
1
If the F1FCA proposes to refuse an application made under section 272 it must give the applicant a warning notice.
2
If the F1FCA decides to refuse the application—
a
it must give the applicant a decision notice; and
b
the applicant may refer the matter to the Tribunal.
I6277 Alteration of schemes and changes of operator, trustee or depositary.
C51
The operator of a scheme recognised by virtue of section 272 must give written notice to the F1FCA of any proposed alteration to the scheme.
2
Effect is not to be given to any such proposal unless—
a
the F1FCA, by written notice, has given its approval to the proposal; or
C73
At least one month before any replacement of the operator, trustee or depositary of such a scheme, notice of the proposed replacement must be given to the F1FCA—
a
by the operator, trustee or depositary (as the case may be); or
b
by the person who is to replace him.
F74
If a change is made, or is to be made, to the law which applies to such a scheme in the country or territory in which it is managed and the change affects or will affect any of the matters mentioned at section 272(2) to (4), the operator of the scheme must give written notice of the change to the FCA—
a
at least one month before the change takes effect; or
b
if that is not reasonably practicable, as soon as it is reasonably practicable to do so.
5
A notice under this section—
a
must be given in such manner as the FCA may direct; and
b
where the notice is given under subsection (1) or (3), must include such information as the FCA may direct for the purpose of determining whether the requirements for the making of an order under section 272 in respect of the scheme would continue to be satisfied following the alteration or replacement that is the subject of the notice.
277AF4Regular provision of information relating to compliance with requirements for recognition
1
The operator of a scheme recognised by virtue of section 272 must provide to the FCA such information as the FCA may direct, at such times as the FCA may direct, for the purpose of determining whether the requirements for the making of an order under section 272 in respect of the scheme continue to be satisfied.
2
A direction under subsection (1) may not require information to be provided within the period of 12 months beginning with the date on which information was last required to be provided to the FCA in respect of the scheme pursuant to a requirement under section 274(2)(c) or a direction under subsection (1) or section 277(5)(b).
3
The information must be provided in such manner as the FCA may direct.