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Individually recognised overseas schemes |
| Individually recognised overseas schemes. |
241. - (1) The Authority may, on the application of the operator of a collective investment scheme which-
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(a) is managed in a country or territory outside the United Kingdom, |
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(b) does not satisfy the requirements prescribed for the purposes of section 235, |
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(c) is not managed in a country or territory designated for the purposes of section 239 or, if it is so managed, is of a class not specified by the designation order, and |
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(d) appears to the Authority to satisfy the requirements set out in the following provisions of this section,
make an order declaring the scheme to be a recognised scheme. |
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(2) The scheme must afford adequate protection to the participants.
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(3) The scheme's constitution and management must be adequate.
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(4) The powers and duties of the operator and, if the scheme has a trustee or depositary, of the trustee or depositary must be adequate.
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(5) In deciding whether the matters mentioned in subsection (3) or (4) are adequate, the Authority must have regard to the trust scheme rules or to corresponding rules relating to authorised open-ended investment companies.
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(6) The scheme must take the form of an open-ended investment company or (if it does not take that form) the operator must be a body corporate.
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(7) The operator of the scheme must-
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(a) if an authorised person, have permission to act as operator; |
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(b) if not an authorised person, be a fit and proper person to act as operator. |
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(8) The trustee or depositary (if any) of the scheme must-
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(a) if an authorised person, have permission to act as trustee or depositary; |
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(b) if not an authorised person, be a fit and proper person to act as trustee or depositary. |
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(9) The name of the scheme must not be undesirable or misleading.
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(10) The purposes of the scheme must be reasonably capable of being successfully carried into effect.
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(11) The participants must be entitled to have their units redeemed in accordance with the scheme at a price related to the net value of the property to which the units relate and determined in accordance with the scheme.
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(12) But a scheme is to be treated as complying with subsection (11) if it requires the operator to ensure that a participant is able to sell his units on an investment exchange at a price not significantly different from that mentioned in that subsection.
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(13) Subsection (11) is not to be read as imposing a requirement that the participants must be entitled to have their units redeemed (or sold as mentioned in subsection (12)) immediately following a demand to that effect.
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| Matters that may be taken into account. |
242. For the purposes of subsections (7)(b) and (8)(b) of section 241, the Authority may take into account any matter relating to-
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(a) any person who is or will be employed by or associated with the operator, trustee or depositary in connection with the scheme; |
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(b) any director of the operator, trustee or depositary; |
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(c) any person exercising influence over the operator, trustee or depositary; |
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(d) any body corporate in the same group as the operator, trustee or depositary; |
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(e) any director of any such body corporate; |
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(f) any person exercising influence over any such body corporate. |
| Applications for recognition of individual schemes. |
243. - (1) An application under section 241 for an order declaring a scheme to be a recognised scheme must be made to the Authority by the operator of the scheme.
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(2) The application-
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(a) must be made in such manner as the Authority may direct; |
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(b) must contain the address of a place in the United Kingdom for the service on the operator of notices or other documents required or authorised to be served on him under this Act; |
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(c) must contain or be accompanied by such information as the Authority may reasonably require for the purpose of determining the application. |
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(3) At any time after receiving an application and before determining it, the Authority may require the applicant to provide it with further information.
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(4) Different directions may be given, and different requirements imposed, in relation to different applications.
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(5) The Authority may require an applicant to present information which he is required to give under this section in such form, or to verify it in such a way, as the Authority may direct.
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| Determination of applications. |
244. - (1) An application under section 241 must be determined by the Authority before the end of the period of six months beginning with the date on which it receives the completed application.
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(2) The Authority may determine an incomplete application if it considers it appropriate to do so; and it must in any event determine such an application within twelve months beginning with the date on which it first receives the application.
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| Procedure when refusing an application. |
245. - (1) If the Authority proposes to refuse an application made under section 241 it must give the applicant a warning notice.
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(2) If the Authority refuses the application-
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(a) it must give the applicant a decision notice; and |
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(b) the applicant may refer the matter to the Tribunal. |
| Alteration of schemes and changes of operator, trustee or depositary. |
246. - (1) The operator of a scheme recognised by virtue of section 241 must give written notice to the Authority of any proposed alteration to the scheme.
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(2) Effect is not to be given to any such proposal unless-
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(a) the Authority has given its approval to the proposal; or |
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(b) one month, beginning with the date on which notice was given under subsection (1), has expired without the Authority having notified the operator that the proposal is not approved. |
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(3) At least one month before any replacement of the operator, trustee or depositary of such a scheme, notice of the proposed replacement must be given to the Authority-
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(a) by the operator, trustee or depositary (as the case may be); or |
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(b) by the person who is to replace him. |
