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COLL 1.1 Applications and purpose

Application

COLL 1.1.1 G RP
  1. (1)

    This sourcebook, except for COLL 9 (Recognised schemes), applies to:

    1. (a)

      investment companies with variable capital (ICVCs);

    2. (b)

      ACDs, other directors and depositaries of ICVCs; and

    3. (c)

      managers and trustees of authorised unit trust schemes (AUTs).

  2. (2)

    COLL 9 applies to operators of schemes that are recognised schemes and to those seeking to secure recognised status for such schemes.

COLL 1.1.1A R RP

1This sourcebook does not apply to an incoming ECA provider acting as such.

Purpose

COLL 1.1.2 G RP
  1. (1)

    The general purpose of this sourcebook is to contribute to the FSA meeting its regulatory objective of the protection of consumers. It provides a regime of product regulation for authorised funds, which sets appropriate standards of protection for investors by specifying a number of features of those products and how they are to be operated.

  2. (2)

    In addition, this sourcebook implements part of the requirements of the UCITS Directive to meet community obligations relevant to authorised funds, with other requirements implemented in other parts of the Handbook.

The Collective Investment Schemes Information Guide

COLL 1.1.3 G RP

The Collective Investment Schemes Information Guide COLLG provides some general background material on the regulatory structure surrounding scheme regulation in the UK.

COLL 1.2 Types of authorised fund

Types of authorised fund

COLL 1.2.1 R RP

An application for an authorisation order must propose that the scheme be one of the following types:

  1. (1)

    a UCITS scheme;

  2. (2)

    a non-UCITS retail scheme; or

  3. (3)

    a qualified investor scheme.

Types of authorised fund - explanation

COLL 1.2.2 G RP
  1. (1)

    UCITS schemes have to comply with the conditions necessary in order to enjoy the rights available under the UCITS Directive. Such schemes must in particular comply with:

    1. (a)

      COLL 3.2.8 R (UCITS obligations); and

    2. (b)

      the investment and borrowing powers rules for UCITS schemes set out in COLL 5.2 to COLL 5.5 .

  2. (2)

    Non-UCITS retail schemes are schemes that do not comply with all the conditions set out in the UCITS Directive. Such schemes could become UCITS schemes provided they are changed, so as to comply with the conditions set out in the UCITS Directive.

  3. (3)

    Qualified investor schemes may only be promoted to professional investors on the same terms as unregulated collective investment schemes. Such schemes could change to become non-UCITS retail schemes or UCITS schemes.

  4. (4)

    The changes referred to in (2) and (3) require approval by the FSA and further information on that process is provided inCOLLG 3.1.5 G (Notification of changes to unit trusts (section 251)) and COLLG 4.1.3 G (Notification of changes to ICVCs (Regulation 21)).