Part XVII Collective Investment Schemes

Chapter IV Open-ended Investment Companies

262 Open-ended investment companies.

1

The Treasury may by regulations make provision for—

a

facilitating the carrying on of collective investment by means of open-ended investment companies;

b

regulating such companies.

2

The regulations may, in particular, make provision—

a

for the incorporation and registration in Great Britain of bodies corporate;

b

for a body incorporated by virtue of the regulations to take such form as may be determined in accordance with the regulations;

c

as to the purposes for which such a body may exist, the investments which it may issue and otherwise as to its constitution;

d

as to the management and operation of such a body and the management of its property;

e

as to the powers, duties, rights and liabilities of such a body and of other persons, including—

i

the directors or sole director of such a body;

ii

its depositary (if any);

iii

its shareholders, and persons who hold the beneficial title to shares in it without holding the legal title;

iv

its auditor; and

v

any persons who act or purport to act on its behalf;

f

as to the merger of one or more such bodies and the division of such a body;

g

for the appointment and removal of an auditor for such a body;

h

as to the winding up and dissolution of such a body;

i

for such a body, or any director or depositary of such a body, to be required to comply with directions given by the Authority;

j

enabling the Authority to apply to a court for an order removing and replacing any director or depositary of such a body;

k

for the carrying out of investigations by persons appointed by the Authority or the Secretary of State;

l

corresponding to any provision made in relation to unit trust schemes by Chapter III of this Part.

3

Regulations under this section may—

a

impose criminal liability;

b

confer functions on the Authority;

c

in the case of provision made by virtue of subsection (2)(l), authorise the making of rules by the Authority;

d

confer jurisdiction on any court or on the Tribunal;

e

provide for fees to be charged by the Authority in connection with the carrying out of any of its functions under the regulations (including fees payable on a periodical basis);

f

modify, exclude or apply (with or without modifications) any primary or subordinate legislation (including any provision of, or made under, this Act);

g

make consequential amendments, repeals and revocations of any such legislation;

h

modify or exclude any rule of law.

4

The provision that may be made by virtue of subsection (3)(f) includes provision extending or adapting any power to make subordinate legislation.

5

Regulations under this section may, in particular—

a

revoke the M1Open-Ended Investment Companies (Investment Companies with Variable Capital) Regulations 1996; and

b

provide for things done under or in accordance with those regulations to be treated as if they had been done under or in accordance with regulations under this section.