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2005-01-01

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2005-09-29
2006-02-01

CIS 17.1 Application and purpose

Application

CIS 17.1.1 R 01/12/2004

(1)
The rules and guidance in this chapter apply in relation to recognised schemes and overseas collective investment schemes seeking recognition in the United Kingdom.
(2)
CIS 17.1, CIS 17.2, CIS 17.4 (excluding CIS 17.4.9 G) apply to the operators of schemes recognised or seeking recognition under section 264 of the Act (Schemes constituted in other EEAStates).
(3)
CIS 17.1, CIS 17.2, CIS 17.3 (excluding CIS 17.3.3 R and CIS 17.3.6 G) and CIS 17.4 (excluding CIS 17.4.8 G) apply to the operators of schemes recognised or seeking recognition under section 270 of the Act (Schemes authorised in designated countries or territories).
(4)
CIS 17.1, CIS 17.2, CIS 17.3 (excluding CIS 17.3.5 G) and CIS 17.4 (excluding CIS 17.4.8 G) apply to the operators of schemes recognised or seeking recognition under section 272 of the Act (Individually recognised overseas schemes).

Purpose

CIS 17.1.2 G 01/12/2004

(1)
This chapter enables operators of schemes established overseas to know what information and documents the FSA wish to review so as to enable it to consider whether to recognise their schemes, under the Act, for marketing in the United Kingdom. This information will enable the FSA to make an informed decision whether or not schemes established overseas should be recognised under the Act.
(2)
This chapter sets out responsibility for the preparation and maintenance of a prospectus (in the case of schemes recognised under section 270 and section 272) and requirements relating to it.
(3)
In addition, this chapter sets out the rules for operators of recognised schemes to maintain certain facilities in the United Kingdom under section 283 of the Act. It also provides guidance on revocation of recognition in relation to recognised schemes.

Guidance on passportable activities

CIS 17.1.3 G 13/02/2004

CIS 16.1.8 G provides guidance on notifications of schemes constituted in other EEA States. The manager of such a scheme will be a UCITS qualifier, and so be an authorised person under Schedule 5 to the Act, if it carries out scheme management activity and activity in connection with the operation of the scheme only. If the manager of such a scheme wishes to undertake the passportable activities of managing investments (other than of collective investment schemes), investment advice or safekeeping and administration of investments, as provided by article 5(3) of the UCITS Directive, as well as scheme management, it will need to do so in accordance with an authorisation conferred by Schedule 3 to the Act and should refer to the procedures in 3SUP 13A3 and SUP 14 accordingly.1

CIS 17.2 Information and documents which should be supplied with a notification under section 264 of the Act

CIS 17.2.1 G 13/02/2004

(1)
If the operator of a scheme constituted in a EEA State gives notice to the FSA under section 264 of the Act, as described in that notice is required to contain or be accompanied by certain information as described in CIS 17.2.1 G (2)to (4) (see the [Financial Services Markets Act 2000 (Collective Investment Schemes Constituted in Other EEA States) Regulations 2001 (SI 2001/2383)).
(2)
The documents must be in English, or accompanied by a translation in English.
(3)
The documents must be certified by the operator to be true copies of the original.
(4)
The following information and documentation must be provided:
1. (a)
  name of scheme;
2. (b)
  legal form of scheme;
3. (c)
  name and address of operator;
4. (d)
  the address of the place in the United Kingdom for the service on the operator of notices or other documents;
5. (e)
  the name and address of any supervisory authority or authorities to which the operator is subject in the EEA State in which it is established;
6. (f)
  whether the operator intends to market the scheme in the United Kingdom in a manner which will involve it carrying on a regulated activity in the United Kingdom;
7. (g)
  name and address of depositary;
8. (h)
  the address in the United Kingdom where the scheme facilities (see CIS 17.4) will be maintained;
9. (i)
  details of the arrangements for the marketing of units in the United Kingdom, namely:1
  1. (i)
    the proposed commencement date;
  2. (ii)
    whether the units or shares will be sold by or through: any employed sales force; authorised persons; or unsolicited calls;
10. (j)
  any order or certificate from the authorities of the EEA State in which the scheme is authorised which demonstrates that the scheme complies with the UCITS directive;
11. (k)
  a copy of the instrument constituting the scheme;
12. (l)
  a copy of the prospectus and simplified prospectus of the scheme; and
13. (m)
  a copy of the latest annual report and any subsequent half-yearly report.

Subsequent notification in respect of schemes recognised under section 264 of the Act.

CIS 17.2.2 G 01/12/2004

Whenever a change occurs in the information supplied or in a document supplied under CIS 17.2.1 G, the FSA wishes to be notified of these changes.

CIS 17.3 Notification to the FSA under section 270 and applications under section 272

Information and documents to be supplied with notifications under sections 270 (designated territories) and applications under section 272 (individually recognised overseas schemes) of the Act

CIS 17.3.1 D 01/12/2004

(1)
If the operator of a scheme gives notice to the FSA under section 270 or makes an application under section 272 of the Act, the notice or application must contain (or be accompanied by) the information in CIS 17.3.1 D(2) to (4).
(2)
The documents must be in English or accompanied by a translation in English.
(3)
The documents must be certified by the operator to be true copies of the original.
(4)
The following list is the information and documentation which is referred to in CIS 17.3.1 D(1) and which must be provided with a notification under section 270 or application under section 272 of the Act.
1. (a)
  name of scheme;
2. (b)
  legal form of scheme;
3. (c)
  name and address of the operator;
4. (d)
  the address of the place in the United Kingdom for service on the operator of notices or other documents;
5. (e)
  whether the operator intends to market the scheme in the United Kingdom in a manner which will involve it carrying on a regulated activity in the United Kingdom;
6. (f)
  name and address of any person to whom the property subject to the scheme is entrusted for safekeeping;
7. (g)
  the address of the place in the United Kingdom where scheme facilities (see CIS 17.4) will be maintained;
8. (h)
  details of the arrangements for the marketing of units in the United Kingdom, namely:
  1. (i)
    the proposed commencement date;
  2. (ii)
    whether the units or shares will be sold by or through: any employed sales force (including any appointed representative); persons authorised under the Act; or unsolicited calls;
9. (i)
  a copy of the instrument constituting the scheme;
10. (j)
  a copy of the prospectus or any similar document giving details of the scheme;
11. (k)
  a copy of the latest annual report and any subsequent half-yearly report;
12. (l)
  a copy of any other document affecting the rights of participants in the scheme; and
13. (m)
  for notifications under section 270 only, a copy of the authorisation document issued by the authority in the designated territory confirming that the scheme is of a class covered by the designation order.

Subsequent notification in respect of schemes recognised under sections 270 and 272 of the Act

CIS 17.3.2 G 01/12/2004

Wherever a change occurs in the information supplied or in a document supplied under CIS 17.3.1 D, the FSA wishes to be notified of these changes.

Additional information required in the prospectus for notifications under section 272

CIS 17.3.3 R 01/12/2004

(1)
The prospectus must contain the following statement:"Complaints about the operation of the scheme may be made to the FSA."
(2)
The prospectus must state whether or not investors in the scheme would be covered by the Compensation Scheme. If investors in the scheme are covered by the Compensation Scheme the prospectus must state how they are covered and who they would need to contact for further information.

Preparation and maintenance of prospectus

CIS 17.3.4 R 01/12/2004

(1)
An operator of a scheme which is a recognised scheme by virtue of section 270 or 272 of the Act must comply, subject to paragraph (2) below, with the requirements set out in CIS 3 in respect of the preparation, publication and inspection of a prospectus.
(2)
Where a scheme recognised under section 270 of the Act is managed and authorised in the Bailiwick of Guernsey or the Bailiwick of Jersey or the Isle of Man, the prospectus need not comply with the requirements of CIS 3, providing it contains corresponding matter required under the law in their territory.
(3)
An operator of a collective investment scheme which is recognised under section 270 or 272 of the Act must comply with the requirements in CIS 3.3 (False or misleading prospectus) and CIS 3.4 (Revision of and changes to prospectus).

Refusal of approval: schemes recognised under section 270 of the Act

CIS 17.3.5 G 01/12/2004

The FSA's power to refuse recognition and the procedures for this are set out in section 271 of the Act and described in CIS 16.1.

Refusal of approval: schemes recognised under section 272 of the Act

CIS 17.3.6 G 01/12/2004

The FSA's power to refuse recognition and the procedures for this are set out in section 276 of the Act and described in CIS 16.1.

CIS 17.4 Facilities in the United Kingdom and revocation of recognition

General

CIS 17.4.1 R 01/12/2004

The operator of a recognised scheme under section 264, section 270 and section 272 of the Act must maintain facilities in order to satisfy the requirements of CIS 17.4.2 R to CIS 17.4.7 R. CIS 17.4.8 G applies to revocation of a recognised scheme under section 264 of the Act and CIS 17.4.9 G applies to cessation or revocation of recognition under section 279 of the Act.

Documents

CIS 17.4.2 R 01/12/2004

(1)
The operator of a recognised scheme must maintain facilities for inspection (free of charge) and for the obtaining (free of charge, in the case of the documents at (c) and (d), and otherwise at no more than a reasonable charge) of copies in English of:
1. (a)
  the instrument constituting the scheme;
2. (b)
  any instrument amending the instrument constituting the scheme;
3. (c)
  the prospectus most recently prepared by the operator; and
4. (d)
  the annual and half-yearly reports relating to the scheme most recently prepared and published by the operator.
(2)
An operator to which paragraph (1) applies must, before conclusion of a sale of units in the scheme to any person in the United Kingdom, offer that person free of charge a copy of the documents mentioned at paragraphs (1)(c) and (d).

Price and redemption

CIS 17.4.3 R 01/12/2004

(1)
The operator must, subject to (2), maintain facilities:
1. (a)
  where information in English can be obtained about the operator's most recently published sale and purchase prices of units in the scheme;
2. (b)
  where a participant in the scheme may redeem units in the scheme and from which payment of the price on redemption may be obtained.
(2)
Paragraph (1) does not apply if the operator having taken reasonable care determines that participants in the scheme are able to sell their units on an investment exchange at a price related to the net asset value of the property to which the units relate or at a price not significantly different from such a price: in that case it must maintain facilities for informing participants of the investment exchange concerned (and of its members or of how a list of its members can be obtained).

Bearer certificates and characteristics of units in the scheme

CIS 17.4.4 R 01/12/2004

(1)
The operator must maintain facilities at which the holder of a bearer certificate may obtain free of charge:
1. (a)
  payment of dividends due to him;
2. (b)
  copies in English of the most recent annual and half-yearly reports of the scheme; and
3. (c)
  details or copies of any notices which have been given or sent to participants in the scheme.
(2)
The operator must state the nature of the right represented by the units in the scheme.
(3)
The operator must state whether persons other than holders can vote at meetings of holders and who those persons are.

Complaints

CIS 17.4.5 R 01/12/2004

The operator must maintain facilities at which any person who has a complaint to make about the operation of the scheme can submit his complaint for transmission to the operator.

Place of facilities

CIS 17.4.6 R 01/12/2004

(1)
Each of the facilities referred to in CIS 17.4 must be maintained at an address in the United Kingdom.
(2)
That address must be stated in the prospectus.
(3)
That address must be the address of the operator's principal place of business in the United Kingdom, or, if there is no such address, the alternative address in paragraph (4).
(4)
The alternative address is such convenient address as the operator determines, except that, in the case of a scheme recognised under section 272 of the Act where the operator is not an authorised person, the alternative address is to be the principal place of business in the United Kingdom of the authorised person who is the representative of the operator under section 272 of the Act.

Service of notice and other documents

CIS 17.4.7 R 01/12/2004

In relation to notices and documents sent by operators and depositaries to and from the United Kingdom, CIS 11.6 (Service of notices and other documents) applies.

Revocation of recognition: schemes recognised under section 264 of the Act

CIS 17.4.8 G 01/12/2004

If the operator of a scheme recognised under section 264 of the Act gives written notice to the FSA under section 264(6) that it desires the scheme to no longer be recognised, the scheme ceases to be recognised.

Revocation of recognition: schemes recognised under sections 270 and 272 of the Act

CIS 17.4.9 G 01/12/2004

The FSA may, in accordance with section 279 of the Act, direct that a scheme is to cease to be recognised under section 270 of the Act or revoke a recognition order under section 272 of the Act. For further details, see ENF 16 (Collective Investment Schemes).

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