Part XVII Collective Investment Schemes

F1CHAPTER 3AAUTHORISED CONTRACTUAL SCHEMES

Annotations:
Amendments (Textual)

Applications for authorisation

261EAuthorisation orders: holding of units

1

The participants in a contractual scheme must be entitled to have their units redeemed in accordance with the scheme at a price—

a

related to the net value of the property to which the units relate; and

b

determined in accordance with the scheme.

2

The scheme must not allow units in the scheme to be issued to anyone other than—

a

a professional investor;

b

a large investor; or

c

a person who already holds units in the scheme.

3

The scheme must require the operator, if it becomes aware that units have become vested in a person to whom as a result of subsection (2) the units could not have been issued, to redeem the units as soon as practicable.

4

In subsection (2)—

  • “professional investor” means a person who falls within one of the categories (1) to (4) of Section I of Annex II to the markets in financial instruments directive (professional clients for the purpose of that directive); and

  • “large investor” means a person who, in exchange for units in the scheme, makes a payment of, or contributes property with a value of, not less than £1,000,000.