CIS 6.3 Transferability of units

This rule (CIS 6.3.1 R) applies to trustees.

Every Unitholder is entitled, subject to (3), to transfer units held by him for which he is entered in the register by an instrument of transfer in any form the trustee may approve.

The trustee is not under any duty to accept a transfer:

1. (a)

   if the number or value of the units sought to be transferred would result in the Unitholder, or the transferee, holding less than any number or value stated in the prospectus as the minimum number to be held; or

2. (b)

   if the AUT is a relevant pension scheme and the transfer is not one permitted by the trust deed; or

3. (c)

   if the AUT is a relevant charitable scheme and it would lose its status if the transferee became a Unitholder; or

4. (d)

   if the trust deed contains a limitation upon the categories of persons who may be Unitholders and the transferee is not within one of those categories; or

5. (e)

   unless the transfer is excluded by Schedule 19 of the Finance Act 1999 (or any statutory modification or re-enactment of it) from a charge to stamp duty reserve tax, or there has been paid to the trustee, for the account of the AUT, an amount agreed between the trustee and the manager not exceeding the amount that would be derived by applying the rate of stamp duty reserve tax to the market value of the units being transferred.

Every instrument of transfer of units must be signed by or on behalf of the Unitholder transferring the units (or, in the case of a body corporate, sealed by that body corporate or signed by one of its officers (or in Scotland, two of its officers)) authorised to sign it and, unless the transferee is the manager, the transferor must be treated as the Unitholder until the name of the transferee has been entered in the register.

Every instrument of transfer, duly stamped if it is required to be stamped, must be left with the trustee for registration accompanied by:

1. (a)

   any necessary declarations or other documents that may be required in consequence of any legislation in force at the time; and

2. (b)

   such other evidence as the trustee may require to prove the right of the transferor to transfer the units or in the case of a body corporate the authority of the signatory on its behalf.

All instruments of transfer which are registered must be retained by the trustee in original, copy or non-documentary form for a period of six years from the date of registration.

Upon registration of an instrument of transfer, a reference must be made on the register enabling the name of the transferor and the transferee and the date of transfer to be identified.

This rule (CIS 6.3.2 R) applies to managers and trustees.

On the death of any one of joint Unitholders, the surviving Unitholder or Unitholders must be the only persons recognised by the trustee and the manager as having any title to or any interest in the units held by those joint Unitholders.

The executors or administrators of a deceased Unitholder (who was not one of two or more joint Unitholders) must be the only persons recognised by the trustee and the manager as having title to the units held by the deceased Unitholder.

Where any person becomes entitled to a unit in consequence of the death or bankruptcy of any sole Unitholder or of the survivor of joint Unitholders:

1. (a)

   he may, subject to (b), upon producing evidence of his title required by the trustee, either be registered himself as Unitholder (upon giving written notice to the trustee) or transfer the unit to some other person;

2. (b)

   CIS 6.3.1 R (Transferability of units by act of parties) applies to any such notice or transfer as if the death or bankruptcy had not occurred and as if the notice or transfer were a transfer signed by the Unitholder;

3. (c)

   the new owner may, subject to (d), give a discharge for all monies payable for the unit, but will not, until registered as a Unitholder, be entitled to receive notices or attend or vote at any meeting of Unitholders; and

4. (d)

   the trustee may, at its discretion, retain any monies payable for the unit until the new owner is registered as the Unitholder or transfers the unit.