COBS 4.13 UCITS

1. (1)

   1This section applies to a firm in relation to a communication to a client, including an excluded communication, that is a marketing communication within the meaning of the UCITS Directive.

2. (2)

   This section does not apply to:

   1. (a)

      image advertising; or

   2. (b)

      the instrument constituting the fund2, the prospectus, the key investor information3 or the periodic reports and accounts of a UCITS scheme4.

      2

1. (1)

   A firm must ensure that a marketing communication that comprises an invitation to purchase units in a UCITS scheme4 and that contains specific information about the scheme:

   1. (a)

      makes no statement that contradicts or diminishes the significance of the information contained in the prospectus and the key investor information document4 for the scheme;

   2. (b)

      indicates that a prospectus exists for the scheme and that the key investor information document4 is available; and

   3. (c)

      specifies where and in which language such information or documents may be obtained by investors or potential investors or how they may obtain access to them.

2. (2)

   Where a UCITS scheme4 may invest more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the United Kingdom or4 an EEA State, one or more of its local authorities, a third country or a public international body to which the United Kingdom or4 one or more EEA States belong, the firm must ensure that a marketing communication relating to the scheme contains a prominent statement drawing attention to the investment policy and indicating the particular states, local authorities4 or public international bodies in the securities of which the scheme intends to invest or has invested more than 35% of its scheme property.

3. (3)

   Where a UCITS scheme4 invests principally in units in collective investment schemes, deposits or derivatives, or replicates a stock or debt securities index in accordance with COLL 5.2.31 R (Schemes replicating an index)4, the firm must ensure that a marketing communication relating to the scheme contains a prominent statement drawing attention to the investment policy.

4. (4)

   Where the net asset value of a UCITS scheme or 4has, or is likely to have, high volatility owing to its portfolio composition or the portfolio management techniques that are or may be used, the firm must ensure that a marketing communication relating to the scheme contains a prominent statement drawing attention to that characteristic.

A firm must ensure that a marketing communication (other than a key investor information document4) relating to a feeder UCITS contains a statement that the feeder UCITS permanently invests at least 85% in value of its assets in units of its master UCITS.