COLL 6.1 Introduction and Application
Application
This chapter applies to:
- (1)
an authorised fund manager of an AUT, ACS2 or an ICVC;
- (2)
- (3)
a depositary of an AUT, ACS2 or an ICVC; and
- (4)
an ICVC,
where such AUT, ACS2 or ICVC is a UCITS scheme or a non-UCITS retail scheme.
Purpose
This chapter helps in achieving the statutory objective of protecting consumers. It provides the operating framework within which the authorised fund must be operated on a day-to-day basis to ensure that clients are treated fairly when they become, remain or as they cease to be unitholders.
Explanation of this chapter
- (1)
The authorised fund manager operates the scheme on a day-to-day basis. Its operation is determined by the rules in this chapter, which require appropriate powers in the instrument constituting the scheme or refer to the need to state the relevant operating procedures in the prospectus of the scheme.
- (2)
The authorised fund manager does not necessarily have to carry out all the activities it is responsible for and may delegate functions to other persons. The rules in this chapter set out the parameters of such delegation.
- (3)
The depositary's duty is, generally speaking, to ensure the safe custody of scheme property and to oversee certain functions of the1 authorised fund manager (most notably the pricing and dealing function and investment powers). The oversight responsibilities for a trustee of an AUT are similar to, but not the same as, the oversight responsibilities of the depositary of an ICVC or ACS2. These differences result from the different legal structure of the authorised funds and the trustee's obligations under trust law.