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COLL TP 1 Transitional Provisions

COLL TP 1.1

(1)

(2)

Material to which the transitional provision applies

(3)

(4)

Transitional provision

(5)

Transitional provision: dates in force

(6)

Handbook provision: coming into force

Extra time provisions

Existing schemes electing to comply with COLL

1

Each and every rule in COLL

R

The rules in COLL do not apply to any relevant party in relation to an authorised fund in respect of which an application for an authorisation order was received by the FSA before 1 April 2004, unless the authorised fund manager of the scheme has exercised its right of election on behalf of the scheme to comply with COLL, instead of CIS, in accordance with CIS 1.1.1A R COLL (Right to elect to comply with ).

From 1 April 2004 to 12 February 2007

1 April 2004

2

Each and every rule in COLL

G

The effect of transitional provision 1 is that the default position for the relevant parties of existing authorised funds (by which is meant authorised funds in respect of which the application for the authorisation order was received by the FSA before 1 April 2004) is that CIS continues to apply until 12 February 2007 unless the relevant authorised fund manager has exercised its right of election in accordance with CIS 1.1.1A R to comply with COLL, instead of CIS.

New schemes electing to comply with CIS

3

Each and every rule in COLL

R

(1) The authorised fund manager of an authorised fund whose authorisation order application was received by the FSA on or after 1 April 2004 may, with the consent of each of the other relevant parties:

From 1 April 2004 to 12 February 2007

1 April 2004

(a) elect to comply with CIS; and

(b) subsequently revoke such an election and elect to comply with COLL, in which case no further election is permitted for that fund.

(2) An election or revocation in (1) does not take effect unless the authorised fund manager has notified the FSA in writing of:

(a) the election or revocation; and

(b) the date from which it is to take effect.

(3) While an election in (1)(a) remains in effect, COLL does not apply to any relevant party in respect of the authorised fund. Instead, each relevant party must comply with CIS.

(4) The right of election referred to in (1) only applies in relation to an authorised fund which is a UCITS scheme, a money market scheme, a futures and options scheme, a geared futures and options scheme a property scheme, a feeder fund or a funds of funds scheme.

(5) The authorised fund manager must make a record of any election or revocation under (1), and retain it for a period of six years from the date it takes effect.

4

Each and every rule in COLL

G

(1) It is not necessary for the schemes referred to in transitional provision 3(4) initially to have complied with COLL, before an election is made on its behalf under transitional provision 3(1)(a) to comply with CIS.

(2) Note that while the FSA's permission is not required for an election under paragraph 3(1)(a) or a revised election under paragraph 3(1)(b), changes to the relevant instrument constituting the scheme and prospectus to give effect to such a revised election will require the FSA's written permission, as explained in CIS 16.1.11 G (Notification of proposed changes to ICVCs) and CIS 16.1.12 G (Notification of proposed changes to AUTs).

UCITS business restrictions

5

COLL 6.9.9 R (2) to (6) (Restrictions of business for UCITS management companies)

R

A UCITS management company must not carry on any of the activities specified in COLL 6.9.9 (2) COLL 6.9.9 (3)COLL 6.9.9 (4) COLL 6.9.9 (5) COLL 6.9.9 (6) COLL 6.9.9 R (2) to (6) (inclusive) unless it is a UCITS investment firm:

From 1 April 2004 to 12 February 2007

1 April 2004

(a) whose permission to carry on any such activity was given before 13 February 2004; or

(b) which complies with Chapter 7 of IPRU(INV).

6

COLL 6.9.9 (2) COLL 6.9.9 (3)COLL 6.9.9 (4) COLL 6.9.9 (5) COLL 6.9.9 (6) COLL 6.9.9 R (2) to (6) (Restrictions of business for UCITS management companies)

G

A UK firm will not be able to act as such and exercise an EEA right under the UCITS Directive unless it complies with Chapter 7 of IPRU(INV)

Committees and delegation

7

COLL 6.6.15R(2), (4) and (5) (Committees and delegation)

R

(1) Subject to (2), a UCITS management company which became authorised before 13 February 2004will not contravene COLL 6.6.15 (2), COLL 6.6.15 (4) and COLL 6.6.15 (5) (Committees and delegation) to the extent that it complies with CIS 7.6.1 R (2), CIS 7.6.1 R (4) and CIS 7.6.1 R (5) and CIS 7.10.4 R (1), CIS 7.10.4 R (5) and CIS 7.10.4 R (6) as they applied before 12 February 2004.

(2) Paragraph (1) does not apply in relation to any UK firm which exercises an EEA right under the UCITS Directive.

From 1 April 2004 to 12 February 2007

1 April 2004

Existing dual-priced AUTs: dealing and valuation

8

COLL 6.2 (dealing); COLL 6.3 (Valuation and pricing); COLL 5.2.5 R (Valuation) and COLL 4.2.5 R 16 (Table: contents of the prospectus)

R

(1) Subject to (2), the manager of a dual-priced AUT which has exercised its entitlement under CIS 1.1.1AR to comply with COLL instead of CIS, will not contravene any of the provisions in column (2) to the extent that it complies with CIS 15 (Dual-pricing and dealing), CIS 5.2.5 R (Valuation) and CIS 5A.2.5 R (Valuation) (and references in COLL to the rules in column (2) are to be construed accordingly).

From 1 April 2004 until 12 February 2007

1 April 2004

(2) Where the rules in COLL 6.2 (Dealing), COLL 6.3 (Valuation and pricing) and COLL 5.2.5 R (Valuation) conflict with the relevant requirements of CIS 15 (Dual-pricing and dealing), CIS 5.2.5 R (Valuation) and CIS 5A.2.5 R (Valuation), the manager must proceed on the basis that the former rules (COLL) override the latter (CIS) unless compliance with a relevant rule in COLL 6.2 or COLL 6.3 or COLL 5.2.5 R would not be possible.

9

COLL 6.2 (dealing); COLL 6.3 (Valuation and pricing); COLL 5.2.5 R (Valuation) and COLL 4.2.5 R 16 (Table: contents of the prospectus)

G

(1) A dual-priced AUT values on a basis that results in different issue and cancellation prices compared to a single-priced scheme. Furthermore, the manager sets sale and redemption prices within the pricing envelope of the cancellation price and issue price together with the preliminary charge. Transitional provision 8 allows such a system to continue to operate.

(2) However, transitional provision 8 also requires the COLL provisions to override the applicable CIS provisions where appropriate, that is in circumstances where there is a conflict between them. So, for example, publishing prices should comply with COLL 6.3.11 R (Publication of prices) rather than CIS 15.4.14 R. Where complying with the relevant COLL rules would not be practicable or not feasible for some reason, the manager is advised to contact the FSA.

10

FEES 3.2.1 R2

2

R

(1) If the authorised fund manager of a scheme notifies the FSA under section 251 of the Act or regulation 21 of the OEIC Regulations in relation to a proposal to alter a scheme under transitional provision 1 or transitional provision 3(1)(b), the authorised fund manager must pay to the FSA a fee of £400 for each individual scheme and a fee of £800 for each umbrella scheme

(2) A fee payable under this provision must be paid by bankers draft, cheque or other payable order when the notification is made.

1 April 2004 to 12 February 2007

1 April 2004

Definition of relevant party

11

COLL

R

For the purposes of these transitional rules, a "relevant party" in relation to:

From 1 April 2004 until 12 February 2007

1 April 2004

(1) any AUT, is its manager and trustee; and

(2) any ICVC, is:

(a) the ICVC;

(b) its ACD;

(c) any other directors of the ICVC; and

(d) its depositary.

122

Expired2