COLL 13.2 Operational requirements for feeder NURS

This section applies as follows:

1. (1)

   COLL 13.2.2 R to COLL 13.2.6 R apply to the authorised fund manager of a feeder NURS;

2. (2)

   COLL 13.2.6 R also applies to:

   1. (a)

      an ICVC that is a feeder NURS; and

   2. (b)

      any person acting on behalf of either the feeder NURS or the authorised fund manager of the feeder NURS; and

3. (3)

   COLL 13.2.7 R applies to the authorised fund manager of a UCITS scheme or a non-UCITS retail scheme which operates as a qualifying master scheme to a feeder NURS.

Before investing in the qualifying master scheme, the authorised fund manager of the feeder NURS must:

1. (1)

   be satisfied on reasonable grounds that the authorised fund manager can obtain from the qualifying master scheme all the information necessary to comply on an ongoing basis with the rules in COLL;

2. (2)

   having consulted with the depositary of the feeder NURS, be satisfied on reasonable grounds that the depositary of the feeder NURS can obtain from the qualifying master scheme, the operator of the qualifying master scheme or the depositary of the qualifying master scheme all the information necessary to comply with its duties under COLL 6.6.4 R (General duties of the depositary); and

3. (3)

   where the qualifying master scheme is a UCITS scheme or a non-UCITS retail scheme, inform the authorised fund manager of the qualifying master scheme of the date on which the feeder NURS will begin to invest into the qualifying master scheme as a feeder NURS.

The authorised fund manager of a feeder NURS must take reasonable care to ensure that its units are not owned, including beneficially owned, by the qualifying master scheme.

1. (1)

   Where the operator of a qualifying master scheme or the authorised fund manager of a qualifying master scheme imposes any charge which is, or is equivalent in effect to, a preliminary charge or redemption charge on the feeder NURS for the acquisition or disposal of units in the qualifying master scheme, the authorised fund manager of the feeder NURS must pay to the feeder NURS an amount equal to such charge within four business days following the relevant acquisition or disposal.

2. (2)

   In this rule, where the operator of a qualifying master scheme or authorised fund manager of a qualifying master scheme requires any addition to or deduction from the consideration paid on the acquisition or disposal of units in the qualifying master scheme which is, or is equivalent in effect to, a dilution levy made in accordance with COLL 6.3.8 R (Dilution)1, it is to be treated as part of the price of the units and not as part of any preliminary charge or redemption charge referred to in (1).

The authorised fund manager of a feeder NURS must take appropriate measures to co-ordinate the timing of the feeder NURS' net asset value calculation and publication with those of its qualifying master scheme, including the publication of dealing prices, in order to avoid market timing of their units, and prevent arbitrage opportunities.

Where, in connection with an investment in the units of the qualifying master scheme, a distribution fee, commission or other monetary benefit is received by:

1. (1)

   a feeder NURS; or

2. (2)

   an authorised fund manager of a feeder NURS; or

3. (3)

   any person acting on behalf of (1) or (2);

   that fee, commission or other monetary benefit must be paid into the scheme property of the feeder NURS within four business days of receipt of that fee, commission or other monetary benefit.

Where the qualifying master scheme is a UCITS scheme or a non-UCITS retail scheme, the authorised fund manager of the qualifying master scheme must not, if it would unfairly prejudice the interests of unitholders of the qualifying master scheme other than the feeder NURS, provide or make available information to the authorised fund manager of the feeder NURS without at the same time also providing or making available that information to the unitholders of the qualifying master scheme other than the feeder NURS.