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Financial Services and Markets Bill - continued        House of Lords

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Schemes constituted in other EEA States
Schemes constituted in other EEA States.     260. - (1) A collective investment scheme constituted in another EEA State is a recognised scheme if-
    (a) it satisfies such requirements as are prescribed for the purposes of this section; and
    (b) not less than two months before inviting persons in the United Kingdom to become participants in the scheme, the operator of the scheme gives notice to the Authority of his intention to do so, specifying the way in which the invitation is to be made.
      (2) But this section does not make the scheme a recognised scheme if within two months of receiving the notice under subsection (1) the Authority notifies-
    (a) the operator of the scheme, and
    (b) the authorities of the State in question who are responsible for the authorisation of collective investment schemes,

that the way in which the invitation is to be made does not comply with the law in force in the United Kingdom.

      (3) The notice to be given to the Authority under subsection (1)-
    (a) must be accompanied by a certificate from the authorities mentioned in subsection (2)(b) to the effect that the scheme complies with the conditions necessary for it to enjoy the rights conferred by any relevant Community instrument;
    (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; and
    (c) must contain or be accompanied by such other information and documents as may be prescribed.
      (4) A notice given by the Authority under subsection (2) must-
    (a) give the reasons for which the Authority considers that the law in force in the United Kingdom will not be complied with; and
    (b) specify a reasonable period (which may not be less than 28 days) within which any person to whom it is given may make representations to the Authority.
      (5) For the purposes of this section a collective investment scheme is constituted in another EEA State if-
    (a) it is constituted under the law of that State by a contract or under a trust and is managed by a body corporate incorporated under that law; or
    (b) it takes the form of an open-ended investment company incorporated under that law.
      (6) The operator of a recognised scheme may give written notice to the Authority that he desires the scheme to be no longer recognised by virtue of this section.
      (7) On the giving of notice under subsection (6), the scheme ceases to be a recognised scheme.
Representations and references to the Tribunal.     261. - (1) This section applies if any representations are made to the Authority, before the period for making representations has ended, by a person to whom a notice was given by the Authority under section 260(2).
      (2) The Authority must, within a reasonable period, decide in the light of those representations whether or not to withdraw its notice.
      (3) If the Authority withdraws its notice the scheme is a recognised scheme from the date on which the notice is withdrawn.
      (4) If the Authority decides not to withdraw its notice, it must give a decision notice to each person to whom the notice under section 260(2) was given.
      (5) The operator of the scheme to whom the decision notice is given may refer the matter to the Tribunal.
Disapplication of rules.     262. - (1) Apart from-
    (a) financial promotion rules, and
    (b) rules under section 279(1),

rules made by the Authority under this Act do not apply to the operator, trustee or depositary of a scheme in relation to the carrying on by him of regulated activities for which he has permission in that capacity.

      (2) "Scheme" means a scheme which is a recognised scheme by virtue of section 260.
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