Part XVII Collective Investment Schemes

Chapter V Recognised Overseas Schemes

Schemes constituted in other EEA States

267 Power of Authority to suspend promotion of scheme.

1

Subsection (2) applies if it appears to the Authority that the operator of a scheme has communicated an invitation or inducement in relation to the scheme in a manner contrary to financial promotion rules.

2

The Authority may direct that—

a

the exemption from subsection (1) of section 238 provided by subsection (4)(c) of that section is not to apply in relation to the scheme; and

b

subsection (5) of that section does not apply with respect to things done in relation to the scheme.

3

A direction under subsection (2) has effect—

a

for a specified period;

b

until the occurrence of a specified event; or

c

until specified conditions are complied with.

4

The Authority may, either on its own initiative or on the application of the operator of the scheme concerned, vary a direction given under subsection (2) if it appears to the Authority that the direction should take effect or continue in force in a different form.

5

The Authority may, either on its own initiative or on the application of the operator of the recognised scheme concerned, revoke a direction given under subsection (2) if it appears to the Authority—

a

that the conditions specified in the direction have been complied with; or

b

that it is no longer necessary for the direction to take effect or continue in force.

6

If an event is specified, the direction ceases to have effect (unless revoked earlier) on the occurrence of that event.

7

For the purposes of this section and sections 268 and 269—

a

the scheme’s home State is the EEA State in which the scheme is constituted (within the meaning given by section 264);

b

the competent authorities in the scheme’s home State are the authorities in that State who are responsible for the authorisation of collective investment schemes.

8

“Scheme” means a scheme which is a recognised scheme by virtue of section 264.

9

“Specified”, in relation to a direction, means specified in it.