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  1. Point in time
    2006-11-06

COB 10.4 Suitability of the portfolio of an unregulated collective investment scheme

COB 10.4.1R

COB 10.4 applies to an operator of an unregulated collective investment scheme only when undertaking scheme management activity.

COB 10.4.2G

COB 10.4 adapts COB 5.3 (Suitability) for an operator of an unregulated collective investment scheme. It requires the operator to ensure that its management of the portfolio of the scheme is suitable taking into account its investment management objectives. The Collective Investment Schemes sourcebook deals separately with the basis upon which an operator of a regulated collective investment scheme manages its portfolio.

COB 10.4.3R

An operator of an unregulated collective investment scheme when it is undertaking scheme management activity must take reasonable steps to ensure that:

  1. (1)

    each transaction undertaken with or for an unregulated collective investment scheme under its management; and

  2. (2)

    the portfolio for an unregulated collective investment scheme under its management;

is suitable for the scheme.

COB 10.4.4G

For the purposes of COB 10.4.3 R, an operator of an unregulated collective investment scheme should have regard to the stated investment objectives of the scheme.