Reset to Today

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004.

Content Options:

Add to favourites

View Options:

More Resources:

External link Handbook Publications

Alternative versions

  1. Point in time
    2005-06-01

CIS 5A.9 Warrant schemes

Application

CIS 5A.9.1R

This section (CIS 5A.9) applies to authorised fund managers of warrant schemes.

Introduction

CIS 5A.9.2G
  1. (1)

    This section (CIS 5A.9) sets out specific rules for warrant schemes. Warrant schemes are authorised funds which are akin in all respects to securities schemes (as to which see CIS 5A.4 (Securities schemes)), except that they have an unlimited power to invest in warrants.

  2. (2)

    In this sourcebook, Investment and borrowing powers "warrant" has a wider meaning than normally attributed to it in warrant markets. In this sourcebook, warrants are not only instruments giving entitlement to investments (as defined in article 79 of the Regulated Activities Order) but also include any other transferable security (not being a nil or partly paid security) which is listed on an eligiblesecurities market, and which is akin to a warrant in that it involves a down payment and a right to surrender the instrument and pay more in due course in order to obtain a transferable security.

Warrant schemes

CIS 5A.9.3R
  1. (1)

    The scheme property of a warrant scheme must, except where otherwise provided in the rules in this chapter, only consist of property which could be the scheme property of a securities scheme, except that up to 100% in value of the scheme property may consist of warrants.

  2. (2)

    Accordingly, CIS 5A.4 (Securities schemes) (except CIS 5A.4.6 R (Investment in warrants and nil and partly paid securities)) applies to a warrant scheme as it applies to a securities scheme.

  3. (3)

    The following also apply to warrant schemes:

    1. (a)

      CIS 5A.2 (General investment powers and limits for authorised funds);

    2. (b)

      CIS 5A.13 (Efficient portfolio management);

    3. (c)

      CIS 5A.14 (Stock lending);

    4. (d)

      CIS 5A.15 (Cash, borrowing, lending and other provisions); and

    5. (e)

      CIS 5A.16 (Cover for sales).