COLL 12.2 UK UCITS management companies

The FCA's equivalent rules under articles 19(3) and 19(4) of the Directive are set out in COLL 12.3.5 R (COLL fund rules under the management company passport: the fund application rules) and COLL 6.6.3 R (Functions of the authorised fund manager).

1. (1)

   Each EEA State, including the United Kingdom, is required to implement article 14 of the UCITS Directive by drawing up rules of conduct which management companies authorised in that State must observe at all times, except as explained in (3).

2. (2)

   UK UCITS management companies operating an EEA UCITS scheme under the freedom to provide cross border services (otherwise than by establishing a branch in that State) are advised that, as provided for elsewhere in the Handbook, they are required to comply with the following rules and guidance in relation to such business, as follows:

   1. (a)

      COLL 6.6A.2 R (Duties of AFMs of UCITS schemes and EEA UCITS schemes to act in the best interests of the scheme and its Unitholders);

   2. (b)

      COLL 6.6A.4 R (Due diligence requirements of AFMs of UCITS schemes and EEA UCITS schemes);

   3. (c)

      COLL 6.6A.5 R (Compliance with the regulatory requirements applicable to the conduct of business activities of a UCITS management company);

   4. (d)

      SYSC, to the extent indicated in column A+ (Application to a management company) of Part 3 of SYSC 1 Annex 1 (Detailed application of SYSC); and

   5. (e)

      COBS, to the extent indicated at paragraph 9.1 of Part 3 of COBS 1 Annex 1 (Application).

3. (3)

   Rules of conduct drawn up by a Host State under article 14 of the UCITS Directive are for branch operations reserved to that State under article 17(4) of that Directive. A UK UCITS management company operating an EEA UCITS scheme from a branch in an EEA State other than the United Kingdom, should be aware that it will be expected to comply with the relevant requirements of its Host State regulator that correspond to the rules referred to at (2)(a) to (c) and (e). Further guidance on the COBS position may be found at paragraph 9 of Part 3 of COBS 1 Annex 1 (Application). As explained at paragraph 2.16AR of Part 2 of SYSC 1 Annex 1 (Detailed application of SYSC), SYSC, to the extent indicated in column A+ (Application to a management company) of Part 3 of SYSC 1 Annex 1, applies to a UK UCITS management company in relation to passported activities carried on by it from a branch in another EEA State, reflecting that responsibility for such matters is shared between the management company'sHome and Host State regulators.

1. (1)

   A UK UCITS management company which applies to operate an EEA UCITS scheme in another EEA State is advised that it must comply with the requirements of the Host State regulator regarding provision to them of the following documents:

   1. (a)

      the written agreement it has entered into with the depositary of the EEA UCITS scheme, as referred to in articles 23 and 33 of the UCITS Directive; and

   2. (b)

      information on delegation arrangements (if any), regarding functions of investment management and administration which are to be delegated to a third party.

2. (2)

   If the UCITS management company already manages other UCITS of the same type in the EEA State referred to in (1), reference to the documents already provided should be sufficient.

3. (3)

   Any subsequent material modifications of the documents referred to in (1) must be notified by the UK UCITS management company to the Host State regulator.

A UK UCITS management company that operates an EEA UCITS scheme is advised that in accordance with the requirements of the Host State regulator it must establish appropriate procedures and arrangements to make information available at the request of the public or that regulator.