Subsection (2) applies if, in accordance with rules made by the F2FCA to implement Article 66 of the UCITS directive, the F2FCA is informed by the manager of an authorised unit trust scheme which is a master UCITS that a feeder UCITS which invests in units of the scheme is an EEA UCITS.

The F2FCA must immediately inform the home state regulator of the feeder UCITS of the investment made by that UCITS in the master UCITS.