Part XVII

Collective Investment Schemes
Chapter III

Authorised Unit Trust Schemes

Powers of intervention

Procedure on giving directions under section 257 or 258A and varying them on FCA's own initiative.
259
1
A direction under section 257 or 258A takes effect—
a
immediately, if the notice given under subsection (3) states that that is the case;
b
on such date as may be specified in the notice; or
c
if no date is specified in the notice, when the matter to which it relates is no longer open to review.
2
A direction under section 257 may be expressed to take effect immediately (or on a specified date) only if the FCA, having regard to the ground on which it is exercising its power under that section, considers that it is necessary for the direction to take effect immediately (or on that date).
3
If the FCA proposes to give a direction under section 257 or 258A, or gives a direction under either section with immediate effect, it must give separate written notice to the manager and the trustee of the scheme concerned.
4
The notice must—
a
give details of the direction;
b
inform the person to whom it is given of when the direction takes effect;
c
state the FCA's reasons for giving the direction and for its determination as to when the direction takes effect;
d
inform the person to whom it is given that he may make representations to the FCA within such period as may be specified in it (whether or not he has referred the matter to the Tribunal); and
e
inform him of his right to refer the matter to the Tribunal.
5
If the direction imposes a requirement under section 257(2)(a), the notice must state that the requirement has effect until—
a
a specified date; or
b
a further direction.
6
If the direction is given under section 257(2)(b) or section 258A(2) or (4), the scheme must be wound up—
a
by a date specified in the notice; or
b
if no date is specified, as soon as practicable.
7
The FCA may extend the period allowed under the notice for making representations.
8
If, having considered any representations made by a person to whom the notice was given, the FCA decides—
a
to give the direction in the way proposed, or
b
if it has been given, not to revoke the direction,
it must give separate written notice to the manager and the trustee of the scheme concerned.
9
If, having considered any representations made by a person to whom the notice was given, the FCA decides—
a
not to give the direction in the way proposed,
b
to give the direction in a way other than that proposed, or
c
to revoke a direction which has effect,
it must give separate written notice to the manager and the trustee of the scheme concerned.
10
A notice given under subsection (8) must inform the person to whom it is given of his right to refer the matter to the Tribunal.
11
A notice under subsection (9)(b) must comply with subsection (4).
12
If a notice informs a person of his right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.
13
This section applies to the variation of a direction on the FCA's own initiative as it applies to the giving of a direction.
14
For the purposes of subsection (1)(c), whether a matter is open to review is to be determined in accordance with section 391(8).
S. 259 wholly in force at 1.12.2001; s. 259 not in force at Royal Assent see s. 431(2); s. 259 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 259 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)
Words in s. 259 heading inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(22)(a)
Words in s. 259(1) inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(22)(b)
Words in s. 259(6) substituted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(22)(c)
Pt. 17 modified (20.2.2019) by The Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/325), regs. 1(3), 62 (as amended (31.1.2020 immediately before exit day) by The Financial Services (Consequential Amendments) Regulations 2020 (S.I. 2020/56), regs. 1, 12(b))
Words in s. 259(2) inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(10)(a)(i) (with reg. 24)
Word in ss. 254-262 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 9(1)(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Words in s. 259(2) substituted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(10)(a)(ii) (with reg. 24)
Word in s. 259 heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 9(1)(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Words in s. 259(3) substituted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(10)(b) (with reg. 24)