Part XVII

Collective Investment Schemes
CHAPTER
3A

AUTHORISED CONTRACTUAL SCHEMES

Powers of intervention

Winding up or merger of master UCITS
261Z
1
Subsection (2) applies if a master
UCITS
which has one or more feeder
UCITS
which are authorised contractual schemes is wound up, whether as a result of a direction given by the
FCA
under section 257 or 261X, an order of the court under section 258 or 261Y, rules made by the
FCA
or otherwise.
2
The
FCA
must direct the operator and depositary of any authorised contractual scheme which is a feeder
UCITS
of the master
UCITS
to wind up the feeder
UCITS
unless—
a
the
FCA
approves under section 283A the investment by the feeder
UCITS
of at least 85% of the total property which is subject to the collective investment scheme constituted by the feeder
UCITS
in units of another
UCITS
or master
UCITS
; or
b
the
FCA
approves under section 261S an amendment of the contractual scheme deed of the feeder
UCITS
which would enable it to convert into a
UK
UCITS
which is not a feeder
UCITS
.
3
Subsection (4) applies if a master
UCITS
which has one or more feeder
UCITS
which are authorised contractual schemes—
a
merges with another
UCITS
, or
b
is divided into two or more
UCITS
.
4
The
FCA
must direct the operator and depositary of any authorised contractual scheme which is a feeder
UCITS
of the master
UCITS
to wind up the scheme unless—
a
the
FCA
approves under section 283A the investment by the scheme of at least 85% of the total property which is subject to the collective investment scheme constituted by the feeder
UCITS
in the units of—
i
the master
UCITS
which results from the merger;
ii
one of the
UCITS
resulting from the division; or
iii
another
UCITS
or master
UCITS
;
b
the
FCA
approves under section 261S an amendment of the contractual scheme deed of the scheme concerned which would enable it to convert into a
UK
UCITS
which is not a feeder
UCITS
.
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. 261Z(4)(b) inserted (31.12.2020) by The Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/325), regs. 1(2), 22(3) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)
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)
Word in s. 261Z(2)(b) inserted (31.12.2020) by The Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/325), regs. 1(2), 22(2) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)