Part XVII U.K. Collective Investment Schemes

Modifications etc. (not altering text)

C1 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))

[F1 CHAPTER 3A U.K. AUTHORISED CONTRACTUAL SCHEMES

Textual Amendments

F1 Pt. 17 Ch. 3A inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(12) (with reg. 24)

Applications for authorisation U.K.

261E. [F2 Authorised contractual schemes]: holding of units U.K.

[F3 (A1) This section sets out requirements for the purposes of section 261D(1)(a) (authorisation orders).]

(1) The participants in [F4 the] 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 [F5 (a) to (d) of paragraph 3 of Schedule 1 to the markets in financial instruments regulation]; 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.]

Textual Amendments

F2 Words in s. 261E heading substituted (28.6.2018 for specified purposes, 21.7.2018 in so far as not already in force) by The Money Market Funds Regulations 2018 (S.I. 2018/698), regs. 1(2), 2(12)

F3 S. 261E(A1) inserted (29.10.2024) by Financial Services and Markets Act 2023 (c. 29), ss. 64(2)(a), 86(3); S.I. 2024/1071, reg. 2(c)

F4 Word in s. 261E(1) substituted (29.10.2024) by Financial Services and Markets Act 2023 (c. 29), ss. 64(2)(b), 86(3); S.I. 2024/1071, reg. 2(c)

F5 Words in s. 261E(4) substituted (31.12.2020) by The Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/325), regs. 1(2), 17 (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)