LR 15.6 Authorised property unit trusts

This section applies to an authorised property unit trust.

To be listed, an authorised property unit trust must comply, with appropriate modifications to reflect the legal form of the trust, with LR 2 (Requirements for listing - all securities) and LR 6 (Additional requirements for listing for equity securities), with the following modifications and additional conditions:

1. (1)

   the requirements set out in LR 15.2.2 R, LR 15.2.4 R, LR 15.5.3 G and LR 15.5.11 R; and

2. (2)

   the trustee of the authorised property unit trust must be independent of the manager.

An authorised property unit trust must comply with the following, modified as necessary to reflect the legal form of the trust:

1. (1)

   LR 9 (Continuing obligations), as modified by the requirements set out in this section;

2. (2)

   LR 15.4.10 R;

3. (3)

   LR 15.4.12R (4);

4. (4)

   LR 15.4.14 R; and

5. (5)

   LR 15.7.7 R to LR 15.7.9 R.

The following do not apply to an authorised property unit trust:

1. (1)

   LR 9.2.3 R;

2. (2)

   LR 9.3.11 R to LR 9.3.12 R;

3. (3)

   LR 9.3.3R (3)(b) and (c);

4. (4)

   LR 9.5.14 R;

5. (5)

   LR 9.6.7 R to LR 9.6.15 G;

6. (6)

   LR 10 (Significant transactions);

7. (7)

   LR 11 (Related party transactions); and

8. (8)

   LR 12.2.1 R.

1. (1)

   The Model Code applies in relation to persons discharging managerial responsibilities within the managers of an authorised property unit trust as if it were a company and such persons discharging managerial responsibilities were employed by it.

2. (2)

   Paragraph 16 of the Model Code does not apply to dealings in an authorised property unit trust.

The amount of the charges and expenses (to the extent borne by the trust) of the managers, the trustee and any agent of the managers or trustee, or any sub-custodian, must be clearly set out in each annual report of an authorised property unit trust.

The number of units of an authorised property unit trust that are outstanding in bearer or registered form must be notified to a RIS at least monthly.

The bid and offer prices must be notified to a RIS on the occasion of each valuation of units.

An authorised property unit trust must notify the following information to a RIS as soon as possible and in any event within three months of the end of each distribution or allocation period:

1. (1)

   the total gross and net income per unit before charging fees to the authorised property unit trust;

2. (2)

   the net amount per unit (after allowing for charges and adjustments) to be distributed or allocated, together with the gross equivalent attributable to the distribution or allocation period (specifying, where grouping is permitted by the trust deed or equivalent constitutional document, the amount per unit represented by income equalisation);

3. (3)

   the date of the striking of the Unitholders register balances; and

4. (4)

   any date on and from which trading ex distribution (where applicable) will take place.

An authorised property unit trust must notify the following information to a RIS as soon as possible:

1. (1)

   any changes in the identity or control of the manager or trustee;

2. (2)

   any change in the investment policy of the trust; and

3. (3)

   any proposal to renew, vary, amalgamate or terminate the authorised property unit trust.

1. (1)

   A complete file must be maintained by the manager of all advertisements, brochures, leaflets and other documents issued by or on behalf of the manager with a view to effecting or stimulating sales or purchases of units.

2. (2)

   The file must be produced to the FSA at any time on demand.