Part XVII

Collective Investment Schemes
CHAPTER
3A

AUTHORISED CONTRACTUAL SCHEMES

Applications for authorisation

Authorised contractual schemes: holding of units
261E
A1
This section sets out requirements for the purposes of section 261D(1)(a) (authorisation orders).
1
The participants in
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
(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.
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))
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)
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)
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)
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)
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)