Part XVII

Collective Investment Schemes
CHAPTER
3A

AUTHORISED CONTRACTUAL SCHEMES

Co-ownership schemes: rights and liabilities of participants

Limited liability
261O
1
The debts of a relevant scheme are to be paid by the operator out of the property subject to the relevant scheme.
2
The participants in a relevant scheme are not liable for the debts of the relevant scheme beyond the amount of the property subject to the relevant scheme which is available to the operator to meet the debts.
3
In this section—
a
a reference to the debts of a relevant scheme is a reference to debts and obligations incurred under, or in connection with, authorised contracts;
b
“authorised contract” has the meaning given in section 261M(1); and
c
“relevant scheme” has the meaning given in section 261N(3).
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))
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)
S. 261O applied (with modifications) (19.3.2025 immediately after S.I. 2025/200 comes into force) by The Unauthorised Co-ownership Alternative Investment Funds (Reserved Investor Fund) Regulations 2025 (S.I. 2025/216), regs. 1(2), 3