CIS TP 1 Transitional Provisions

1

CIS

R

In these transitional rules, "the previous regulations" means The Financial Services (Regulated Schemes) Regulations 1991 and The Financial Services (Open-Ended Investment Companies) Regulations 1997.

Commencement

Commencement

2

CIS 2

R

In relation to any authorised fund in existence on the day before commencement there is no obligation to revise the instrument constituting the scheme as a result of the application of the rules in CIS until the earlier of:

(1) the first day on or aftercommencement on which the instrument constituting the scheme is first amended;

(2) the day one year following commencement.

Fromcommencement for 12 months until date of revision (whichever is earlier).

Commencement

3

CIS

R

Before the revision of aninstrument constituting the scheme:

(1) thedirectors (in the case of anICVC) and the manager and trustee (in the case of an AUT) must ensure that the instrument constituting the scheme complies with the relevant requirements imposed by or under the previous regulations;

(2) references in that instrument to either of the previous regulations may be treated as a reference to CIS;

(3) any reference in that instrument to anything in the previous regulations may be treated as a reference to any equivalent rule in CIS; and

(4) in the case of an AUT, paragraphs a and b of regulations 16.15 (Transitional : plan sub-registers) of The Financial Services (Regulated Schemes) Regulations 1991 continue to have effect.

Fromcommencementfor 12 months

Commencement

4

CIS 2

R

On the earlier of the day referred to in 2(1) and 2(2), the directors (in the case of an ICVC), and themanager and trustee (in the case of an AUT), must ensure that the instrument constituting the scheme is amended so that its contents comply with therules in CIS.

Fromcommencementfor 12 months until date of revision (whichever is earlier).

Commencement

5

CIS 11.4.4 R

R

No revision of aninstrument constituting the scheme required solely as a result, or as a direct consequence, of the application of the rules in CIS requires any resolution of theholders.

Commencement

Commencement

6

CIS 2.2.2 R (6)

R

In relation to an ICVC in existence on the day before commencement, the instrument of incorporation has effect until the day one year following commencement or, if earlier, until it is revised, as if it contained a statement:

(1) that the ICVC has the power to invest in or deal on any securities or derivatives market which is an eligible market for that ICVC under CIS 5; or

(2) that it has power to invest to the extent that power to do so is conferred by CIS 5 irrespective of any issue of eligibility.

Fromcommencementfor 12 months until date of revision (whichever is earlier).

Commencement

7

CIS 5.2.10 R (2)

R

(1) Until the day one year following commencement or, if earlier, until the trust deed is revised, an AUT may invest scheme property in an ICVC which is:

(a) a futures and options scheme; or

(b) ageared futures and options scheme; or

(c) amoney market scheme; or

(d) a fund of funds scheme; or

(e) aproperty scheme; or

(f) a sub-fund falling within (a) to (e);but only to the extent that a statement in its trust deed permits it to invest in an AUT of equivalent category; any such statement is to be regarded, so far as necessary, as amended accordingly.

(2) For the purposes of (1), any restriction on the extent to which an AUT may invest in another AUT, which is by reference to the identity of the manager of the scheme, is to be treated as applying to the ICVC by reference to the ACD.

Fromcommencementfor 12 months until date of revision (whichever is earlier).

Commencement

8

CIS 5.4.4R (5)

R

An instrument constituting the scheme of an authorised fund in existence before commencement that states that more than 35% of thescheme property is or may be invested in government and public securities issued by one issuer within a class of issuers identified by that instrument, has effect until the day one year following commencement or, if earlier, until it is revised, as if it included the names of those states, local authorities and public international bodies in whose securities the authorised fund was entitled to invest without breach of the previous regulations.

Fromcommencementfor 12 months until date of revision (whichever is earlier).

Commencement

9

CIS 9.2.7 G

G

In relation to an AUT:

(1) The manager may on or after commencement:

(a) continue to make income equalisation payments in accordance with the previous regulations; or

(b) cease to make income equalisation payments;

and for this purpose the trust deed has effect, until the day one year following commencement or, if earlier, until it is revised, if (a) applies, as if it made provision for income equalisation to be paid, calculated and accounted for in accordance with the previous regulations; or, if (b) applies, made no such provision.

(2) the manager may not make income equalisation payments on a basis which is different from that required by the previous regulations unless and until the trust deed is revised so that it includes a statement how the new basis of income equalisation is to be calculated, paid and accounted for.

From commencement for 12 months until date of revision (whichever is earlier).

Commencement

10

CIS 10.3andCIS 10.4

R

(1) In relation to any authorised fund in existence before commencement, thedirectors or manage rmay determine in respect of any reports or accounts for any half-yearly accounting period or annual accounting period ending before the day one year following commencementthat such reports and accounts are to be governed by the previous regulations.

(2) Adirector or manager who determines in accordance with (1) to prepare reports and accounts on the basis of the previous regulations must ensure that those reports and accounts comply with the requirements of those regulations.

From commencement for 12 months.

Commencement

11

CIS

G

GEN contains some technical transitional provisions that apply throughout the Handbook and which are designed to ensure a smooth transition at commencement.

From commencement

Commencement

12

CIS 3.5.2 R(18)

R

Except where theauthorised fund manager takes steps to allow it to adopt a policy enabling it to make an adjustment, the prospectus of anauthorised fund in existence on 1 August 2002 need not be revised solely to take account of the amendments to CIS 3.5.2 R 18 taking effect on that date until the earlier of:

(1) the first day after 1 August 2002 on which the prospectus is revised; and

(2) 1 February 2003.

From 1 August 2002 for 6 months

1 August 2002

13

CIS 7.3.3 R (2)

CIS 7.3.3 R (3)

CIS 7.8.3 R (4)

R

The retention period of 6 years does not apply to records that, as at 1 August 2002, had not been retained.2

From 1 August 2002 until 31 July 2008

1 August 2002

13A4

CIS 3.5.2 R(19)

R

The prospectus of an authorised fund in existence on 1 October 2002 need not be revised solely to take account of the amendments to CIS 3.5.2 R19 until 1 February 2003.

From 1 October 2002 for 4months

1 October 2002

14

CIS 3.2.2 R (3) and CIS 3.5.2 R(10-14) and CIS 5 and CIS 10.4.2 R (16)

R

(1) A UCITS scheme for which there was anauthorisation order in force on or prior to 13 February 2002 may continue to operate under the rules inCIS generally (excepting those to which this provision applies) until 12 February 2007. After that date it must have revised its structure and relevant prospectus and report and accounts in accordance with the rules to which this provision applies and disregard the rules in CIS 5A. All the other rules in CIS will then apply.3

from 1/11/02 until 12/02/07

1/11/02

(2) A UCITS schemeauthorised between 14 February 2002 and 12 February 2004 may continue to operate under the rules in CIS generally (excepting those to which this provision applies) until 12 February 2004. After that date it must have revised its structure and relevant prospectus and report and accounts in accordance with the rules to which this provision applies and disregard the rules in CIS 5A. All the other rules in CIS will then apply.

from 1/11/02 until 12/02/04

1/11/02

15

G

A UCITS scheme may convert at any time within the limits in Transitional provision 14 (1) and 14 (2) as appropriate to operate under the investment rules in CIS 5, but having done so it may not revert to operating under the rules inCIS 5A. On conversion all the rules in CIS save CIS 5A will then apply to a converted scheme4

from 1/11/02 until 12/02/07

1/11/02

16

CIS 2.2.6 R (2)(a)(i), CIS 2.2.6 R (2)(a)(ii), CIS 2.2.6 R (2)(a)(iii), CIS 2.2.6 R (2)(a)(iv) and CIS 3.5.2 R(2)(3)

R

In relation to an authorised fund (which is a securities scheme, warrant scheme, money market scheme, futures and options scheme, fund of funds scheme or an umbrella scheme) in existence the day before 1 November 2002 where this scheme will fall within the newUCITS scheme type within CIS 5 the category of the scheme as stated in the instrument constituting the scheme will be deemed amended to the newscheme type until any subsequent revision of such documentation.4

from 1/11/02 until date of revision

1/11/02

17

CIS 2.2.2 R

CIS 2.2.6 R

CIS 2.2.7 G

R

A scheme which has anauthorisation order in force before 12 February 2004, which is to switch from operating under CIS 5A toCIS 5 and whoseinstrument constituting the scheme refers to the efficient portfolio management rule in CIS 5A.13 (either generally or specifically), may deem the rules in CIS 5A.13 to continue to apply until theinstrument constituting the scheme is amended for any other reason.4

from 1/11/02 until date of revision

1/11/02

18

CIS 5A.13

R

An authorised fund manager may use efficient portfolio management techniques in relation to ascheme provided that this use of derivatives is disclosed in the most recently publishedprospectus.4

from 1/11/02 until revoked by the FSA.

19

CIS 3.4.2 R (2)(d) and CIS 3.5.2 R(13)(2), (3)

R

The requirement to state maximum remuneration in the prospectus does not apply until the prospectus is first amended following 1 November 2002. The insertion of this maximum level of remuneration in the prospectus for the first time will not require a resolution ofholders.4

1/11/02

1/11/02

20

CIS 16.5.1 R (4) to CIS 16.5.1 R (6)

R

A UCITS management company may not carry on any of the activities specified in CIS 16.5.1 R (4) to CIS 16.5.1 R (6) unless it is a UCITS investment firm:

(a) whose permission to carry on any such activity was given before 13 February 2004; or

(b) which complies with Chapter 7 of IPRU(INV).

From 13 February 2004 to 12 February 2007

13 February 2004

21

CIS 16.5.1 R (4) to CIS 16.5.1 R (6)

G

A UK firm will not be able to act as such and exercise an EEA right under the UCITS Directive unless it complies with Chapter 7 of IPRU(INV).

22

CIS 7.6.1 R (2), CIS 7.6.1 R (4) and CIS 7.6.1 R (5)

CIS 7.10.4 R (1), CIS 7.10.4 R (5) and CIS 7.10.4 R (6)

R

(1) Subject to (2), in relation to a UCITS management companywhich became authorised before 13 February 2004,CIS 7.6.1 R (2), CIS 7.6.1 R (4) and CIS 7.6.1 R (5) and CIS 7.10.4 R (1), CIS 7.10.4 R (5) and CIS 7.10.4 R (6) have effect as they applied before 12 February 2004.

(2) Paragraph (1) does not apply in relation to any UK firm which exercises an EEA right under the UCITS Directive57

From 13 February 2004 to 12 February 2007

13 February 2004

23

CIS 10.1.4 G (2), CIS 10.3.3 R (1)(a), CIS 10.3.4 R (1)(a), CIS 10.3.6 R (3), CIS 10.4.8 R (1), and CIS 10.4.9 R (2)(a)

R and G

Reports for any half-yearly accounting period or annual accounting period commencing before 1 December 2003 can comply with the Statement of Recommended Practice, Financial Statements of authorised open-ended investment companies, issued by the FSA in November 2000) or with the Statement of Recommended Practice, Financial Statements of authorised unit trust schemes, issued by IMRO in January 19978.

From 1 February 2004 for 12 months

From commencement but amended as at 1 February 2004