Related provisions for GENPRU 1.2.27
Table: Items which are eligible to contribute to the capital resources of a firm
Item |
Additional explanation |
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1. |
Share capital |
This must be fully paid and may include: |
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(1) |
ordinary share capital; or |
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(2) |
preference share capital (excluding preference shares redeemable by shareholders within two years). |
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2. |
Capital other than share capital (for example, the capital of a sole trader, partnership or limited liability partnership) |
The capital of a sole trader is the net balance on the firm's capital account and current account. The capital of a partnership is the capital made up of the partners': |
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(1) |
capital account, that is the account: |
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(a) |
into which capital contributed by the partners is paid; and |
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(b) |
from which, under the terms of the partnership agreement, an amount representing capital may be withdrawn by a partner only if: |
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(i) he ceases to be a partner and an equal amount is transferred to another such account by his former partners or any person replacing him as their partner; or |
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(ii) the partnership is otherwise dissolved or wound up; and |
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(2) |
current accounts according to the most recent financial statement. |
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For the purpose of the calculation of capital resources, in respect of a defined benefit occupational pension scheme: |
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(1) |
a firm must derecognise any defined benefit asset; |
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(2) |
a firm may substitute for a defined benefit liability the firm'sdeficit reduction amount, provided that the election is applied consistently in respect of any one financial year. |
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3. |
Reserves (Note 1) |
These are, subject to Note 1, the audited accumulated profits retained by the firm (after deduction of tax, dividends and proprietors' or partners' drawings) and other reserves created by appropriations of share premiums and similar realised appropriations. Reserves also include gifts of capital, for example, from a parent undertaking. |
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For the purposes of calculating capital resources, a firm must make the following adjustments to its reserves, where appropriate: |
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(1) |
a firm must deduct any unrealised gains or, where applicable, add back in any unrealised losses on debt instruments held, or formerly held,3 in the available-for-sale financial assets category; |
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(2) |
a firm must deduct any unrealised gains or, where applicable, add back in any unrealised losses on cash flow hedges of financial instruments measured at cost or amortised cost; |
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(3) |
in respect of a defined benefit occupational pension scheme: |
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(a) |
a firm must derecognise any defined benefit asset; |
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(b) |
a firm may substitute for a defined benefit liability the firm'sdeficit reduction amount, provided that the election is applied consistently in respect of any one financial year. |
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4. |
Interim net profits (Note 1) |
If a firm seeks to include interim net profits in the calculation of its capital resources, the profits have, subject to Note 1, to be verified by the firm's external auditor, net of tax, anticipated dividends or proprietors' drawings and other appropriations. |
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5. |
Revaluation reserves |
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6. |
General/ collective provisions (Note 1) |
These are provisions that a firm carrying on home financing1or home finance administration1holds against potential losses that have not yet been identified but which experience indicates are present in the firm's portfolio of assets. Such provisions must be freely available to meet these unidentified losses wherever they arise. Subject to Note 1, general/collective provisions must be verified by external auditors and disclosed in the firm's annual report and accounts. 1111 |
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7. |
Subordinated loans |
Subordinated loans must be included in capital on the basis of the provisions in this chapter that apply to subordinated loans. |
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Note: |
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1 |
Reserves must be audited and interim net profits, general and collective provisions must be verified by the firm's external auditor unless the firm is exempt from the provisions of Part VII of the Companies Act 1985 (section 249A (Exemptions from audit)) or, where applicable, Part 16 of the Companies Act 2006 (section 477 (Small companies: Conditions for exemption from audit))2 relating to the audit of accounts. 2 |
1The following words or terms throughout IPRU-INV 5 appearing in bold (other than headings and titles) are to have the meanings given to them below if not inconsistent with the subject or context. If a defined term is italicised the definition appearing in the main Handbook Glossary applies.
Term |
Meaning |
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accounting reference date |
means: |
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(a) |
the date to which a firm's accounts are prepared in order to comply with the relevant Companies Act legislation. In the case of a firm not subject to Companies Act legislation, the equivalent date selected by the firm; and |
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(b) |
in the case of an OPS firm which is not subject to the relevant Companies Act legislation, the date to which the accounts of the OPS in respect of which the firm acts are prepared. |
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annual expenditure |
has the meaning given in IPRU-INV 5.5.1 (Determination). |
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category a body |
means: |
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(a) |
the government or central bank of a zone a country; or |
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(b) |
EU or Euratom (the European Atomic Energy Community); or |
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(c) |
the government or central bank of any other country, provided the receivable in question is denominated in that country's national currency. |
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category b body |
means: |
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(a) |
the European Investment Bank (EIB) or a multi-lateral development bank; or |
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(b) |
the regional government or local authority of a zone a country; or |
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(c) |
an investment firm or credit institution authorised in a zone a country; or |
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(d) |
a recognised clearing house or exchange; or |
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(e) |
an investment firm or credit institution authorised in any other country, which applies a financial supervision regime at least equivalent to the Capital Adequacy Directive. |
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counterparty |
means any person with or for whom a firm carries on regulated business or an ancillary activity. |
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counterparty risk requirement |
has the meaning given in IPRU-INV 5.11.1R (Counterparty risk requirement). |
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expenditure based requirement |
means the requirement calculated in accordance with IPRU-INV 5.9.1R (Expenditure based requirement). |
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financial resources |
has the meaning given in IPRU-INV 5.2.3R (Financial resources). |
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financial resources requirement |
has the meaning given in IPRU-INV 5.4.1R (Determination of requirement). |
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financial resources rules |
has the meaning given in IPRU-INV 5.2. |
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financial return |
means quarterly financial return or monthly financial return as the case may be. |
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foreign exchange position |
has the meaning given in IPRU-INV 5.14.1R (Foreign exchange requirement). |
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investment |
means a designated investment in the main Glossary. |
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investment business |
means designated investment business in the main Glossary. |
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investment firm |
has the meaning given to investment firm in the main Glossary except that it excludes persons to which MiFID does not apply as a result of articles 2 or 3 of MiFID. |
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Note: An investment firm is not necessarily a firm for the purposes of the rules. |
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investment manager |
means a person who, acting only on behalf of a customer, either: |
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(a) |
manages an account or portfolio in the exercise of discretion; or |
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(b) |
has accepted responsibility on a continuing basis for advising on the composition of the account or portfolio. |
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liquid capital |
has the meaning given in IPRU-INV 5.3.1R (Calculation of own funds and liquid capital). |
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liquid capital requirement |
has the meaning given in IPRU-INV 5.4.4R (Liquid capital requirement). |
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non-retail client |
means a professional client or an eligible counterparty. |
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OPS or occupational pension scheme |
means any scheme or arrangement which is comprised in one or more instruments or agreements and which has, or is capable of having, effect in relation to one or more descriptions or categories of employment so as to provide benefits, in the form of pensions or otherwise, payable on termination of service, or on death or retirement, to or respect of earners with qualifying service in an employment of any such description or category. |
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OPS firm |
means: |
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(a) |
a firm which: |
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(i) |
carries on OPS activity but not with a view to profit; and |
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(ii) |
is one or more of the following: |
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(A) |
a trustee of the occupational pension scheme in question; |
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(B) |
a company owned by the trustees of the occupational pension scheme in question; |
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(C) |
a company which is: |
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(I) |
an employer in relation to the occupational pension scheme in question in respect of its employees or former employees or their dependants; or |
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(II) |
a company within the group which includes an employer within (I); or |
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(III) |
an administering authority subject to the Local Government Superannuation Regulations 1986; or |
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(b) |
a firm which: |
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(i) |
has satisfied the requirements set out in (a) at any time during the past 12 months; but |
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(ii) |
is no longer able to comply with those requirements because of a change in the control or ownership of the employer referred to in (a)(ii) during that period. |
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otc derivative |
means interest rate and foreign exchange contracts covered by Annex III to the previous version of the Banking Consolidation Directive (i.e. Directive (2000/12/EC) and off balance sheet contracts based on equities which are not traded on a recognised or designated investment exchange or other exchange where they are subject to daily margin requirements, excluding any foreign exchange contract with an original maturity of 14 calendar days or less. |
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other assets requirement |
has the meaning given in IPRU-INV 5.17.1R (Other assets requirement). |
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own funds |
has the meaning given in IPRU-INV 5.3.1R and IPRU-INV 5.3.2R, as applicable. |
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own funds requirement |
has the meaning given in IPRU-INV 5.4.3R and IPRU-INV 5.4.4R (Own funds requirement), as applicable. |
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permitted business |
means regulated activity which a firm has permission to carry on. |
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position risk requirement |
has the meaning given in IPRU-INV 5.11.1R (Position risk requirement). |
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prescribed subordinated loan agreement |
means the subordinated loan agreement prescribed by the appropriate regulator for the purposes of IPRU-INV 5.6.4R. |
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qualifying capital instrument |
means that part of a firm's capital which is a security of indeterminate duration, or other instrument, that fulfils the following conditions: |
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(a) |
it may not be reimbursed on the bearer's initiative or without the prior agreement of the appropriate regulator; |
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(b) |
the debt agreement must provide for the firm to have the option of deferring the payment of interest on the debt; |
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(c) |
the lender's claims on the firm must be wholly subordinated to those of all non-subordinated creditors; |
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(d) |
the documents governing the issue of the securities must provide for debt and unpaid interest to be such as to absorb losses, whilst leaving the firm in a position to continue trading; and |
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(e) |
only fully paid-up amounts shall be taken into account. |
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qualifying capital item |
means that part of a firm's capital which has the following characteristics: |
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(a) |
it is freely available to the firm to cover normal banking or other risks where revenue or capital losses have not yet been identified; |
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(b) |
its existence is disclosed in internal accounting records; and |
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(c) |
its amount is determined by the management of the firm and verified by independent auditors, and is made known to, and is monitored by, the FCA. |
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Note: Verification by internal auditors will suffice until such time as EU provisions making external auditing mandatory have been implemented. |
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qualifying property |
has the meaning given in IPRU-INV 5.7.1R (Qualifying property and qualifying amount defined). |
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qualifying subordinated loan |
has the meaning given in IPRU-INV 5.6 (Qualifying subordinated loans). |
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qualifying undertaking |
has the meaning given in IPRU-INV 5.7.3R (Qualifying undertakings). |
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readily realisable investment |
means a unit in a regulated collective investment scheme, a life policy or any marketable investment other than one which is traded on or under the rules of a recognised or designated investment exchange so irregularly or infrequently: |
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(a) |
that it cannot be certain that a price for that investment will be quoted at all times; or |
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(b) |
that it may be difficult to effect transactions at any price which may be quoted. |
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regulated business |
means designated investment business in the main Glossary. |
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relevant foreign exchange items |
means: |
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(a) |
all assets less liabilities, including accrued interest, denominated in the currency (all investments at market or realisable value); |
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(b) |
any currency future, at the nominal value of the contract; |
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(c) |
any forward contract for the purchase or sale of the currency, at the contract value, including any future exchange of principal associated with currency swaps; |
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(d) |
any foreign currency options at the net delta (or delta-based) equivalent of the total book of such options; |
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(e) |
any non-currency option, at market value; |
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(f) |
any irrevocable guarantee; |
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(g) |
any other off-balance sheet commitment to purchase or sell an asset denominated in that currency. |
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reporting currency |
means the currency in which the firm's books of account are maintained. |
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specified trustee business |
1. |
means any investment business carried on in the UK by a trustee firm, but excluding each of the following activities: |
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(a) |
Dealing or arranging deals in investments |
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(i) |
where the deal is transacted or arranged by a trustee firm with or through a PTP; or |
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(ii) |
where the dealing or arranging is done in the course of, or is incidental to, an activity of management falling within paragraph (b) below; or |
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(iii) |
where the trust is a unit trust scheme and the deal is or the arrangements are made with a view to either an issue or sale of units in such a scheme to, or a redemption or repurchase or conversion of such units or a dealing in investments for such a scheme carried out by with or through, the operator or on the instructions of the operator; or |
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(iv) |
where the trustee firm, being a bare trustee (or, in Scotland, a nominee) holding investments for another person, is acting on that person's instructions; or |
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(v) |
where any arrangements do not or would not bring about the transaction in question. |
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(b) |
Managing investments |
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(i) |
where the trustee firm has no general authority to effect transactions in investments at discretion; or |
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(ii) |
if and to the extent that all day-to-day decisions in relation to the management of the investments or any discrete part of the investments are or are to be taken by a PTP; or |
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(iii) |
if and to the extent that investment decisions in relation to the investments or any discrete part of the investments are or are to be taken substantially in accordance with the advice given by a PTP; or |
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(iv) |
where the trustee firm is a personal representative or executor and is acting in that capacity; or |
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(v) |
where the trust is a unit trust scheme and all day-to-day investment decisions in the carrying on of that activity are or are to be taken by the operator of the scheme. |
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(c) |
Investment advice |
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(i) |
where the relevant advice: |
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(A) |
does not recommend the entry into any investment transaction or the exercise of any right conferred by any investment to acquire, dispose of, underwrite or convert such an investment; and |
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(ii) |
if and to the extent that the relevant advice is in substance the advice of a PTP; or |
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(iii) |
where the relevant advice is given by the trustee firm acting in the capacity of personal representative or executor. |
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(d) |
Establishing, operating or winding up a collective investment scheme including acting as trustee of an authorised unit trust scheme but only to the extent that such activities do not otherwise constitute specified trustee business. |
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(e) |
Any trustee activity undertaken as trustee of an issue of debentures or government or public securities: |
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(i) |
where the issue is made by a company listed on a recognised investment exchange or on a designated investment exchange (or by a wholly-owned subsidiary of such a company); or |
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(ii) |
where the issue is listed or traded either on a recognised investment exchange or on a designated investment exchange or on the Société de la Bourse de Luxembourg; or |
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(iii) |
where the issue is made by a government, local authority or international organisation; or |
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(iv) |
where the aggregate amounts issued (pursuant to the trust deed or any deed supplemental thereto and ignoring any amounts redeemed, repurchased or converted) exceed the sum of £10,000,000. |
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2. |
For the purpose of this definition of "specified trustee business": |
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(a) |
a transaction is entered into through a person if that person: |
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(i) |
enters into it as agent; or |
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(ii) |
arranges for it to be entered into as principal or agent by another person and the arrangements are such that they bring about the transaction in question; |
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(b) |
investment transaction means a transaction to purchase, sell, subscribe for or underwrite a particular investment and "investment decision" means a decision relating to an investment transaction; |
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(c) |
debentures means any securities falling within article 77 of the RAO; |
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(d) |
government or public securities means any securities falling within article 78) of the RAO; |
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(e) |
government, local authority or international organisation means: |
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(i) |
the government of the United Kingdom, of Northern Ireland, or of any country or territory outside the United Kingdom; |
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(ii) |
a local authority in the United Kingdom or Anywhere; or |
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(iii) |
an international organisation the members of which include the United Kingdom or another EEA State. |
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(f) |
in determining the size of an issue of debentures or government or public securities made in a currency other than sterling, the amount of the issue shall be converted into sterling at the exchange rate prevailing in London on the date of issue. |
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total capital requirement |
has the meaning given in IPRU-INV 5.4.5R (Total capital requirement). |
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trading book |
in relation to a firm's business or exposures, means: |
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(a) |
its proprietary positions in financial instruments: |
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(i) |
which are held for resale and/or are taken on by the firm with the intention of benefiting in the short term from actual and/or expected differences between their buying and selling prices or from other price or interest-rate variations; |
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(ii) |
arising from matched principal broking; |
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(iii) |
taken in order to hedge other elements of the trading book; |
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(b) |
exposures due to unsettled securities transactions, free deliveries, OTC derivative instruments, repurchase agreements and securities lending transactions based on securities included in (a)(i) to (iii) above, reverse repurchase agreements and securities borrowing transactions based on securities included in (a)(i) to (iii) above; and |
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(c) |
fees, commission, interest and dividends, and margin on exchange-traded derivatives which are directly related to the items included in (a) and (b) above. |
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trustee activity |
means, in relation to a firm, any activity undertaken in the course of or incidental to the exercise of any of its powers, or the performance of any of its duties, when |
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unit trust manager |
means the manager of a unit trust scheme. |
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zone b country |
means a country which is not a Zone A country in the Glossary. |
This table belongs to COLL 3.2.4 R (Matters which must be included in the instrument constituting the fund14)
14Name of scheme |
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1 |
A statement of: |
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(1) |
the name of the authorised fund; and |
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(2) |
whether the authorised fund is a UCITS scheme or a non-UCITS retail scheme. |
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Investment powers in eligible markets |
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2 |
A statement that, subject to any restriction in the rules in this sourcebook or the instrument constituting the fund14, the scheme has the power to invest in any eligible securities market or deal on any eligible derivatives market to the extent that power to do so is conferred by COLL 5 (Investment and borrowing powers). 14 |
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Unitholder's liability to pay |
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3 |
A provision that a unitholder in an AUT, ICVC or co-ownership scheme12 is not liable to make any further payment after he has paid the price of his units and that no further liability can be imposed on him in respect of the units which he holds. |
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3A |
A provision that a unitholder in a limited partnership scheme is not liable for the debts or obligations of the limited partnership scheme beyond the amount of the scheme property which is available to the authorised contractual scheme manager to meet such debts or obligations, provided that the unitholder does not take part in the management of the partnership business.12 |
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3B |
A provision that the exercise of rights conferred on limited partners by FCArules does not constitute taking part in the management of the partnership business.12 |
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Base currency |
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4 |
A statement of the base currency of the scheme. |
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Valuation and pricing |
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5 |
A statement setting out the basis for the valuation and pricing of the scheme. |
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Duration of the scheme |
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6 |
If the scheme is to be wound up after a particular period expires, a statement to that effect. |
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Object of the scheme |
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7 |
A statement: |
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(1) |
as to the object of the scheme, in particular the types of investments and assets in which it and each sub-fund (where applicable) may invest; and |
|
(2) |
that the object of the scheme is to invest in property of that kind with the aim of spreading investment risk and giving unitholders the benefits of the results of the management of that property. |
|
27A |
Where the authorised fund is a qualifying money market fund, a statement to that effect and a statement that the authorised fund's investment objectives and policies will meet the conditions specified in the definition of qualifying money market fund. |
|
[deleted]13 13 |
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Government and public securities: investment in one issuer |
||
8 |
Where relevant, for a UCITS scheme, a statement in accordance with COLL 5.2.12 R (Spread: government and public securities) with the names of 15the individual states, local authorities 15or public international bodies issuing or guaranteeing the transferable securities or approved money-market instruments15in which more than 35% in value of the scheme property may be invested15. |
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Classes of unit |
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9 |
A statement: |
|
(1) |
specifying the classes of unit that may be issued, and for a scheme which is an umbrella, the classes that may be issued in respect of each sub-fund; and |
|
(2) |
if the rights of any class of unit differ, a statement describing those differences in relation to the differing classes. |
|
Authorised fund manager's charges and expenses |
||
10 |
A statement setting out the basis on which the authorised fund manager may make a charge and recover expenses out of the scheme property. |
|
Issue or cancellation directly through the ICVC or depositary of an AUT or ACS12 |
||
11 |
Where relevant, a statement authorising the issue or cancellation of units to take place through the ICVC or depositary of an AUT or ACS directly.12 12 |
|
In specie issue and cancellation |
||
12 |
Where relevant, a statement authorising payment for the issue or cancellation of units to be made by the transfer of assets other than cash. |
|
Restrictions on sale and redemption |
||
13 |
Where relevant, the restrictions which will apply in relation to the sale and redemption of units under COLL 6.2.16 R (Sale and redemption). |
|
Voting at meetings |
||
14 |
The manner in which votes may be given at a meeting of unitholders under COLL 4.4.8 R (Voting rights). |
|
Certificates |
||
15 |
A statement: |
|
(1) |
for ICVCs15, authorising the issue of bearer certificates if any, and how such holders are to identify themselves; and 12 |
|
(2) |
authorising the person responsible for the register to charge for issuing any document recording, or for amending, an entry on the register, other than on the issue or sale of units. |
|
Income |
||
16 |
A statement setting out the basis for the distribution or re-investment of income. |
|
Income equalisation |
||
17 |
Where relevant, a provision for income equalisation. |
|
Redemption or cancellation of units on breach of law or rules |
||
18 |
A statement that where any holding of units by a unitholder is (or is reasonably considered by the authorised fund manager to be) an infringement of any law, governmental regulation or rule, those units must be redeemed or cancelled. |
|
ICVCs: larger and smaller denomination shares |
||
19 |
A statement of the proportion of a larger denomination share represented by a smaller denomination share for any relevant unit class. |
|
ICVCs: resolution to remove a director |
||
20 |
A statement that the ICVC may (without prejudice to the requirements of regulation 21 of the OEIC Regulations (The Authority's approval for certain changes in respect of a company), by a resolution passed by a simple majority of the votes validly cast for and against the resolution at a general meeting of unitholders, remove a director before his period of office expires, despite anything else in the ICVC's instrument of incorporation or in any agreement between the ICVC and that director. |
|
ICVCs: unit transfers |
||
21 |
A statement that the person designated for the purposes of paragraph 4 of Schedule 4 to the OEIC Regulations (Share transfers) is the person who, for the time being, is the ACD of the ICVC.1 7 |
|
ICVCs and ACSs: Charges and expenses12 |
||
22 |
A statement that charges or expenses of the ICVCor ACS12 may be taken out of the scheme property.10 |
|
10ICVCs: Umbrella schemes - principle of limited recourse |
||
1022A |
For an ICVC which is an umbrella, a statement that the assets of a sub-fund belong exclusively to that sub-fund and shall not be used to discharge directly or indirectly the liabilities of, or claims against, any other person or body, including the umbrella, or any other sub-fund, and shall not be available for any such purpose. |
|
Co-ownership schemes: umbrella schemes - principle of limited recourse |
||
22B |
For a co-ownership scheme which is an umbrella, a statement that the property subject to a sub-fund is beneficially owned by the participants in that sub-fund as tenants in common (or, in Scotland, is the common property of the participants in that sub-fund) and must not be used to discharge any liabilities of, or meet any claims against, any person other than the participants in that sub-fund.12 |
|
AUTs: governing law for a trust deed |
||
23 |
A statement that the trust deed is made under and governed by the law of England and Wales, Wales or Scotland or Northern Ireland. |
|
AUTs: trust deed to be binding and authoritative |
||
24 |
A statement that the trust deed: |
|
(1) |
is binding on each unitholder as if it had been a party to it and that it is bound by its provisions; and |
|
(2) |
authorises and requires the trustee and the manager to do the things required or permitted of them by its terms. |
|
AUTs: declaration of trust |
||
25 |
A declaration that, subject to the provisions of the trust deed and all rules made under section 247 of the Act (Trust scheme rules) and for the time being in force: |
|
(1) |
the scheme property (other than sums standing to the credit of the distribution account) is held by the trustee on trust for the unitholders according to the number of units held by each unitholder or, where relevant, according to the number of undivided shares in the scheme property represented by the units held by each unitholder; and |
|
(2) |
the sums standing to the credit of the distribution account are held by the trustee on trust to distribute or apply them in accordance with COLL 6.8 (Income: accounting, allocation and distribution). |
|
AUTs: trustee's remuneration |
||
26 |
Where relevant, a statement authorising payments to the trustee by way of remuneration for its services to be paid (in whole or in part) out of the scheme property. |
|
AUTs: responsibility for the register |
||
27 |
A statement identifying the person responsible under the rules for the maintenance of the register. |
|
ACSs: governing law for a contractual scheme deed |
||
1227A |
A statement that the contractual scheme deed is made under and governed by the law of England and Wales, or Scotland or Northern Ireland. |
|
ACSs: contractual scheme deed to be binding and authoritative |
||
1227B |
A statement that the contractual scheme deed: |
|
(1) |
is binding on each unitholder as if it had been a party to it and that it is bound by its provisions; and |
|
(2) |
authorises and requires the depositary and the authorised contractual manager to do the things required or permitted of them by its terms. |
|
ACSs: ownership of scheme property |
||
1227C |
A statement that, subject to the provisions of the contractual scheme deed and all rules made under section 261I of the Act (Contractual scheme rules) and for the time being in force: |
|
(1) |
the scheme property (other than sums standing to the credit of the distribution account) is held by, or to the order of, the depositary for and on behalf of the unitholders according to the number of units held by each unitholder or, where relevant, according to the number of undivided shares in the scheme property represented by the units held by each unitholder; |
|
(2) |
the sums standing to the credit of the distribution account are held by the depositary to distribute or apply them in accordance with COLL 6.8 (Income: accounting, allocation and distribution); and |
|
(3) |
the scheme property of a co-ownership scheme is beneficially owned by the participants as tenants in common (or, in Scotland, is the common property of the participants). |
|
ACSs: responsibility for the register |
||
1227D |
A statement identifying the person responsible under the rules for the maintenance of the register. |
|
ACSs: UCITS and NURS eligible investors |
||
1227E |
For an ACS which is a UCITS scheme or a non-UCITS retail scheme, a statement that units may not be issued to a person other than a: |
|
(1) |
||
(2) |
||
(3) |
||
1227F |
A statement that the authorised contractual scheme manager must redeemunits as soon as practicable after becoming aware that those units are vested in anyone (whether as a result of subscription or transfer of units) other than a person meeting the criteria in paragraph 27E. |
|
ACSs: UCITS and NURS transfer of units |
||
1227G |
(1) |
A statement whether the transfer of units in the ACSscheme is either: |
(a) prohibited; or |
||
(b) allowed |
||
(2) |
Where transfer of units is allowed in accordance with (1)(b), a statement that units may only be transferred in accordance with the conditions specified by FCArules, including that units may not be transferred to a person other than a: |
|
(b) large ACS investor; or |
||
(3) |
For a co-ownership scheme which is an umbrella, a statement in accordance with (1)(a) or (1)(b) and, where appropriate, a statement in accordance with (2), must also be made for the sub-funds. Where individual sub-funds have differing policies in relation to transfer of units, separate statements are required. |
|
Co-ownership schemes: constitution |
||
1227H |
For a co-ownership scheme, a statement that the arrangements constituting the scheme are intended to constitute a co-ownership scheme as defined in section 235A(2) of the Act. |
|
Co-ownership schemes: operator's powers |
||
1227I |
A statement that the operator of a co-ownership scheme is authorised to: |
|
(1) |
acquire, manage and dispose of the scheme property; and |
|
(2) |
enter into contracts which are binding on unitholders for the purposes of, or in connection with, the acquisition, management or disposal of scheme property. |
|
Co-ownership schemes: winding-up |
||
1227J |
A statement that the operator and depositary of a co-ownership scheme are required to wind up the scheme if directed to do so by the FCA in exercise of its power under section 261X (Directions) or section 261Z (Winding up or merger of master UCITS) of the Act. |
|
Limited partnership schemes: participants |
||
1227K |
A statement that the limited partners, other than the nominated partner, are to be the participants in the scheme. |
|
Limited partnership schemes: resignation of limited partners |
||
1227L |
A statement that the scheme is not dissolved on any person ceasing to be a limited partner or nominated partner provided that there remains at least one limited partner. |
|
Limited partnership schemes: inability to operate as an umbrella |
||
1227M |
A statement that the limited partnership scheme prohibits pooling as is mentioned in section 235(3)(a) of the Act in relation to separate parts of the scheme property, with the effect that the scheme cannot be an umbrella. |
|
3Investment in overseas4 property through an intermediate holding vehicle |
||
328 |
3If investment in an overseas4 immovable is to be made through an intermediate holding vehicle or a series of intermediate holding vehicles, a statement that the purpose of that intermediate holding vehicle or series of intermediate holding vehicles will be to enable the holding of overseas4 immovables by the scheme. |
This table belongs to COLL 8.3.2 R.
1 |
Document status |
|||
A statement that this document is the prospectus of the authorised fund valid as at a particular date which shall be the date of the document. |
||||
2 |
Description of the authorised fund |
|||
Information detailing: |
||||
(1) |
the name of the authorised fund; |
|||
16(1A) |
its FCA product reference number (PRN); |
|||
(2) |
that the authorised fund is either an ICVC, ACS11 or an AUT; |
|||
(3) |
that the scheme is a qualified investor scheme; |
|||
(4) |
where relevant, that the unitholders in an ICVC are not liable for the debts of the authorised fund; |
|||
(5) |
where relevant, the address of the ICVC's head office and the address in the United Kingdom for service on the ICVC of documents required or authorised to be served on it; |
|||
(6) |
the effective date of the authorisation order made by the FCA and, if the duration of the authorised fund is not unlimited, when it will or may terminate; |
|||
(7) |
the base currency for the authorised fund; |
|||
(8) |
where relevant, the maximum and minimum sizes of the ICVC's capital; 11 |
|||
(9) |
the circumstances in which the authorised fund may be wound up under the rules in COLL and a summary of the procedure for, and the rights of unitholders under, such a winding up; and11 11 |
|||
(10)11 |
for an ACS that is a limited partnership scheme, the address of the proposed principal place of business of the limited partnership scheme. |
|||
3 |
Investment objectives and policy |
|||
(1) |
Sufficient information to enable a unitholder to ascertain: |
|||
(a) |
the investment objectives of the authorised fund; |
|||
(b) |
the authorised fund's investment policy for achieving those investment objectives, including: |
|||
(i) |
the general nature of the portfolio and any intended specialisation; |
|||
(ii) |
the policy for the spreading of risk in the scheme property; and |
|||
(iii) |
the policy in relation to the exercise of borrowing powers; |
|||
(c) |
a description of any restrictions in the assets in which investment may be made; and |
|||
(d) |
the extent (if any) to which that investment policy does not envisage remaining fully invested at all times. |
|||
(2) |
For investment in immovables : |
|||
(a) |
the countries or territories of immovables in which the authorised fund may invest; |
|||
(b) |
the policy of the authorised fund manager in relation to insurance of immovables forming part of the scheme property; and |
|||
(c) |
the policy of the authorised fund manager in relation to the granting of options over immovables in the scheme property and the purchase of options on immovables. |
|||
(3) |
If intended, whether the scheme property may consist of units in collective investment schemes ("second schemes") which are managed by or operated by the authorised fund manager or by one of its associates and a statement as: |
|||
(a) |
to the basis of the maximum amount of the charges in respect of transactions in a second scheme; and |
|||
(b) |
the extent to which any such charges will be reimbursed to the scheme. |
|||
(4) |
If intended, whether the scheme may enter into stock lending transactions and, if so, what procedures will operate and what collateral will be required. |
|||
(5) |
Where a scheme is a feeder scheme which (in respect of investment in units in a single collective investment scheme) is dedicated to units in a collective investment scheme, details of the master scheme and the minimum (and, if relevant, maximum) investment that the feeder scheme may make in it;8 |
|||
9 | ||||
4 |
Distributions and accounting dates |
|||
Relevant details of accounting and distribution dates and a description of the procedures: |
||||
(1) |
for determining and applying income (including how any distributable income is paid); and |
|||
(2) |
relating to unclaimed distributions. |
|||
5 |
The characteristics of units in the authorised fund |
|||
Information as to: |
||||
(1) |
the names of the classes of units in issue or available for issue and the rights attached to them in so far as they vary from the rights attached to other classes; |
|||
(2) |
how unitholders may exercise their voting rights and what these are; and |
|||
(3) |
the circumstances where a mandatory redemption, cancellation or conversion of units from one class to another may be required.11 |
|||
115A |
Issue of units in ACSs: eligible investors |
|||
(1) |
A statement that units may not be issued to a person other than to a person : 12 |
|||
(a) |
who 12is a: |
|||
(i) |
||||
(ii) |
||||
(iii) |
||||
(b) |
to whom units in a qualified investor scheme may be promoted under COBS 4.12.4 R.12 12 |
|||
(2) |
A statement that the authorised contractual scheme manager of an ACS must redeemunits as soon as practicable after becoming aware that those units are vested in anyone (whether as a result of subscription or transfer of units) other than a person meeting the criteria in (1). |
|||
115B |
Transfer of units in ACSs |
|||
(1) |
A statement whether the transfer of units in the ACSscheme is either: |
|||
(a) |
prohibited; or |
|||
(b) |
allowed; |
|||
by the instrument constituting the fund13 and prospectus. 13 |
||||
(2) |
A statement that where transfer of units is allowed by the instrument constituting the fund13 and prospectus in accordance with (1)(b), units may only be transferred in accordance with the conditions specified by FCArules, including that units may not be transferred to a person other than a person : 1312 |
|||
(a) |
who 12is a: |
|||
(i) |
||||
(ii) |
||||
(iii) |
||||
(b) |
to whom units in a qualified investor scheme may be promoted under COBS 4.12.4 R.12 12 |
|||
(3) |
For a co-ownership scheme which is an umbrella, a statement in accordance with (1)(a) or (1)(b) and, where appropriate, a statement in accordance with (2), must also be made for the sub-funds. Where individual sub-funds have differing policies in relation to transfer of units, separate statements are required. |
|||
6 |
The authorised fund manager |
|||
The following particulars of the authorised fund manager: |
||||
(1) |
its name and the nature of its corporate form; |
|||
(2) |
the country or territory of its incorporation; |
|||
(3) |
the date of its incorporation and if the duration of its corporate status is limited, when that status will or may cease; |
|||
(4) |
if it is a subsidiary, the name of its ultimate holding company and the country or territory in which that holding company is incorporated; |
|||
(5) |
the address of its registered office, its head office, and, if different, the address of its principal place of business in the United Kingdom; |
|||
(6) |
the amount of its issued share capital and how much of it is paid up; |
|||
(7) |
for an ICVC, a summary of the material provisions of the contract between the ICVC and the authorised fund manager which may be relevant to unitholders including provisions (if any) relating to termination, compensation on termination and indemnity; and |
|||
(8) |
for an AUT, the names of the directors of the authorised fund manager.11 11 |
|||
7 |
Directors of an ICVC, other than the ACD |
|||
Other than for the ACD: |
||||
(1) |
||||
(2) |
the manner, amount and calculation of the remuneration of the directors. |
|||
8 |
The depositary |
|||
The following particulars of the depositary: |
||||
(1) |
its name and the nature of its corporate form; |
|||
(2) |
the country or territory of its incorporation; |
|||
(3) |
the address of its registered office and the address of its head office if that is different from the address of its registered office; and |
|||
(4) |
if neither its registered office nor its head office is in the United Kingdom, the address of its principal place of business in the United Kingdom. |
|||
9 |
The investment adviser |
|||
If an investment adviser is retained in connection with the business of the authorised fund, its name and whether or not it is authorised by the FCA. |
||||
10 |
The auditor |
|||
The name of the auditor of the authorised fund. |
||||
11 |
The register of Unitholders |
|||
Details of the address in the United Kingdom where the register of unitholders is kept and can be inspected by unitholders. |
||||
12 |
Payments out of the scheme property |
|||
The payments that may be made out of the scheme property to any person whether by way of remuneration for services, or reimbursement of expense and for each category of remuneration or expense, the following should be specified: |
||||
(1) |
the current rates or amounts of such remuneration; |
|||
(2) |
how the remuneration will be calculated and accrue and when it will be paid; |
|||
(3) |
if notice has been given to unitholders of the authorised fund manager's intention to: |
|||
(a) |
introduce a new category of remuneration for its services; or |
|||
(b) |
increase the basis of any current charge; or |
|||
(c) |
change the basis of the treatment of a payment from the capital property set out in COLL 8.5.13 R (2) (Payments); |
|||
particulars of that introduction or increase and when it will take place; |
||||
(4) |
the types of any other charges and expenses that may be taken out of the scheme property; and |
|||
(5) |
if, in accordance with COLL 8.5.13 R (2), all or part of the remuneration or expense are to be treated as a capital charge: |
|||
(a) |
that fact; and |
|||
(b) |
the basis of the charge which may be so treated |
|||
13 |
Dealing |
|||
Details of: |
||||
(1) |
the dealing days and times in the dealing day on which the authorised fund manager will receive requests for the sale and redemption of units; |
|||
(2) |
the procedures for effecting: |
|||
(a) |
the issue and cancellation of units; |
|||
(b) |
the sale and redemption of units; and |
|||
(c) |
the settlement of transactions; |
|||
(3) |
the steps required to be taken by a unitholder in redeeming units before he can receive the proceeds including any relevant notice periods and the circumstances and periods where a deferral of payment as provided in COLL 8.5.11 R (3) (Sale and redemption) may be applied; |
|||
(4) |
the circumstances in which the redemption of units may be suspended; |
|||
(5) |
the days and times in the day on which recalculation of the price will commence; |
|||
(6) |
details of the minimum number or value of each type of unit in the authorised fund which: |
|||
(a) |
any one person may hold; and |
|||
(b) |
may be the subject of any one transaction of sale or redemption; |
|||
(7) |
the circumstances in which the authorised fund manager may arrange for, and the procedure for, a redemption of units in specie; |
|||
(8) |
the circumstances in which the further issue of units in any particular class may be limited and the procedures relating to this:66 |
|||
(9) |
the circumstances in which direct issue or cancellation of units by the ICVC or the depositary of an AUT or ACS11 (as appropriate) may occur and the relevant procedures for such issues and cancellations; 18 116 |
|||
(10) |
6whether a unitholder may effect transfer of title to units on the authority of an electronic communication and if so the conditions that must be satisfied in order to effect a transfer; and18 6 |
|||
18(11) |
if the authorised fund manager deals as principal in units of the scheme and holds them for that purpose, a statement of its policy for doing so and, where applicable: |
|||
18(a) |
a description of when the authorised fund manager may retain any profits it earns and absorb any losses it incurs for these activities; and |
|||
18(b) |
a statement of non-accountability as referred to in COLL 8.5.14G. |
|||
14 |
Valuation of scheme property |
|||
Details as to: |
||||
(1) |
how frequently and at what times of the day the scheme property will be regularly valued to determine the price at which units in the scheme may be purchased from or redeemed by the authorised fund manager and a description of any circumstance where the scheme property may be specially valued; |
|||
(2) |
in relation to each purpose for which the scheme property must be valued, the basis on which it will be valued; and |
|||
(3) |
how the price of units of each class will be determined, including a statement that 16a forward price16 basis is to be applied. |
|||
15 |
Sale and redemption charges |
|||
If the authorised fund manager makes any charges on sale or redemption of units, details of the charging structure and how notice will be provided to unitholders of any increase. |
||||
15A5 |
Property Authorised Investment Funds |
|||
For a property authorised investment fund, a statement that: |
||||
(1) |
it is a property authorised investment fund; |
|||
(2) |
no body corporate may seek to obtain or intentionally maintain a holding of more than 10% of the net asset value of the fund; and |
|||
(3) |
in the event that the authorised fund manager reasonably considers that a body corporate holds more than 10% of the net asset value of the fund, the authorised fund manager is entitled to delay any redemption or cancellation of units if the authorised fund manager reasonably considers such action to be: |
|||
(a) |
necessary in order to enable an orderly reduction of the holding to below 10%; and |
|||
(b) |
in the interests of the unitholders as a whole. |
|||
16 |
General information |
|||
Details as to: |
||||
(1) |
when annual and half- yearly reports will be published; and |
|||
(2) |
the address at which copies of the instrument constituting the fund,13 any amending instrument and the most recent annual reports may be inspected and from which copies may be obtained. 13 |
|||
17 |
Information on the umbrella |
|||
In the case of a scheme which is an umbrella, the following information: |
||||
(1) |
that a unitholder may exchange units in one sub-fund for units in another sub-fund and that such an exchange is treated as a redemption and sale; |
|||
(2) |
what charges may be made on exchanging units in one sub-fund for units in other sub-funds; |
|||
(3) |
the policy for allocating between sub-funds any assets of, or costs, charges and expenses payable out of, the scheme property which are not attributable to any particular sub-fund; |
|||
(4) |
in respect of each sub-fund, the currency in which the scheme property allocated to it will be valued and the price of units calculated and payments made, if this currency is not the base currency of the umbrella; 16 |
|||
(5) |
for an ICVC or a co-ownership scheme,11 that:10 10 |
|||
10(a) |
for an ICVC,11 its sub-funds are segregated portfolios of assets and, accordingly, the assets of a sub-fund belong exclusively to that sub-fund and shall not be used to discharge directly or indirectly the liabilities of, or claims against, any other person or body, including the umbrella, or any other sub-fund, and shall not be available for any such purpose; 11 |
|||
11(aa) |
for a co-ownership scheme, the property subject to a sub-fund is beneficially owned by the participants in that sub-fund as tenants in common (or, in Scotland, is the common property of the participants in that sub-fund) and must not be used to discharge any liabilities of, or meet any claims against, any person other than the participants in that sub-fund; and |
|||
10(b) |
for an ICVC or a co-ownership scheme,11 while the provisions of the OEIC Regulations, and section 261P (Segregated liability in relation to umbrella co-ownership schemes) of the Act in the case of co-ownership schemes,11 provide for segregated liability between sub-funds, the concept of segregated liability is relatively new. Accordingly, where claims are brought by local creditors in foreign courts or under foreign law contracts, it is not yet known how those foreign courts will react to regulations 11A and 11B of the OEIC Regulations or, as the case may be, section 261P of the Act; and16 1111 |
|||
16(6) |
||||
18 |
Application of the prospectus contents to an umbrella |
|||
For a scheme which is an umbrella, information required must be stated: |
||||
(1) |
in relation to each sub-fund where the information for any sub-fund differs from that for any other; and |
|||
(2) |
for the umbrella as a whole, but only where the information is relevant to the umbrella as a whole. |
|||
318A |
Investment in overseas4 property through an intermediate holding vehicle3 |
|||
If investment in an overseas4 immovable is to be made through an intermediate holding vehicle or a series of intermediate holding vehicles a statement disclosing the existence of that intermediate holding vehicle or series of intermediate holding vehicles and confirming that the purpose of that intermediate holding vehicle or series of intermediate holding vehicles is to enable the holding of overseas4 immovables by the scheme.3 |
||||
1118B |
Information on authorised contractual schemes |
|||
A statement that: |
||||
(1) |
a unitholder in a co-ownership scheme is not liable to make any further payment after he has paid the price of his units and that no further liability can be imposed on him in respect of the units he holds; |
|||
(2) |
a unitholder in a limited partnership scheme is not liable for the debts or obligations of the limited partnership scheme beyond the amount of the scheme property which is available to the authorised contractual scheme manager to meet such debts or obligations, provided that the unitholder does not take part in the management of the partnership business; |
|||
(3) |
the exercise of rights conferred on limited partners by FCArules does not constitute taking part in the management of the partnership business; and |
|||
(4) |
the scheme property of a co-ownership scheme is beneficially owned by the participants as tenants in common (or, in Scotland, is the common property of the participants). |
|||
19 |
Additional information |
|||
Any other material information which is within the knowledge of the directors11 of an ICVC or the authorised fund manager11 of an AUT or ACS11, or which the directors or authorised fund manager11 would have obtained by the making of reasonable enquiries which investors and their professional advisers would reasonably require, and reasonably expect to find in the prospectus, for the purpose of making an informed judgement about the merits of investing in the authorised fund and the extent and characteristics of the risks accepted by so participating. 111111 |
42Where the measure is not cumulative (e.g. the number of traders for fee-block A10), the firm must use the figure relating to the valuation date specified in FEES 4 Annex 1R Part 548 (e.g. 31 December for A10)48. Table A sets out the reporting requirements for the key fee-blocks when full48 actual data is not available:
Table A: calculating tariff data for second and subsequent years of authorisation when full trading figures are not available
Fee-block |
Tariff base |
Calculation where trading data are not available |
A1. Deposit acceptors |
Average MELS for October - December |
Use data available at 31 December or, if trading has not commenced by 31 December, use nil48. |
A2. Home finance providers and administrators |
Number of relevant contracts entered into or being administered in the twelve months up to 31 December |
Apply the formula (A÷B) x 12 to arrive at an annualised figure. |
A3. Insurers - general |
Gross written premium for fees purposes (GWP) 43for the financial year ended in the calendar year ending 31 December and best estimate liabilities for fees purposes (BEL) 43 valued at the end of the financial year |
GWP 43 – apply the formula (A÷B) x 12 to arrive at an annualised figure. BEL – use 43 data at valuation date or, if trading has not commenced by then, use nil48. |
A4. Insurers - life |
Gross written premium for fees purposes (GWP) 43 for the financial year ended in the calendar year ending 31 December and best estimate liabilities for fees purposes (BEL) 43 valued at the end of the financial year |
|
A5. Managing agents at Lloyd’s |
Active capacity in respect of the underwriting year at the beginning of the period to which the fee relates |
Not applicable. |
A6. The Society of Lloyd’s |
Bespoke fee |
Not applicable. |
A7. Portfolio managers |
Funds under management valued at 31 December |
Use data as at 31 December or, if trading has not commenced by 31 December, use nil48. |
A9. Managers and depositaries of investment funds, and operators of collective investment schemes or pension schemes |
Annual gross income for the financial year ended in the calendar year ending 31 December |
Apply the formula (A÷B) x 12 to arrive at an annualised figure. |
A10. Firms dealing as principal |
Number of traders as at 31 December |
Use data as at 31 December or, if trading has not commenced by 31 December, use nil48. |
A13. Advisors, arrangers, dealers or brokers |
Annual income for the financial year ended in the calendar year ending 31 December |
Apply the formula (A÷B) x 12 to arrive at the annualised figure |
A14. Corporate finance advisers |
||
A18. Home finance providers, advisers and arrangers |
||
A19. General insurance distribution44 |
||
A21. Firms holding client money or assets, or both |
The highest amount of client money and the highest amount of custody assets held over the 12 months ending 31 December |
The highest amount of client money and/or custody assets over the period between the date of authorisation and 31 December or, if trading has not started, use nil48. |
Flat fee |
Not applicable. |
|
B. Service companies |
Annual income for the financial year ended in the calendar year ending 31 December |
Apply the formula (A÷B) x 12 to arrive at the annualised figure. |
B. Regulated benchmark45 administrators |
Annual income for the financial year ended in the calendar year ending 31 December39 |
Apply the formula (A÷B) x 12 to arrive at the annualised figure.39 |
B. Recognised investment exchanges |
Annual income for the financial year ended in the calendar year ending 31 December39 |
Apply the formula (A÷B) x 12 to arrive at the annualised figure.39 |
B. Recognised auction platforms 49 |
Flat fee 49 |
Not applicable. 49 |
B. Recognised overseas investment exchanges |
Flat fee |
Not applicable. |
CC1. Credit-related regulated activities with limited permission |
Annual income for the financial year ended in the calendar year ending 31 December |
Apply the formula (A÷B) x 12 to arrive at an annualised figure. |
CC2. Credit related regulated activities |
||
G.2 Payment services institutions – deposit acceptors |
See A1 deposit acceptors |
|
G.3. Large payment services institutions |
Relevant income |
Apply the formula (A÷B) x 12 to arrive at an annualised figure. |
G.4 Small payment institutions |
Flat fee |
Not applicable. |
G.5 Other payment institutions |
Relevant income |
Apply the formula (A÷B) x 12 to arrive at an annualised figure. |
G.10 Large electronic money institutions |
Average outstanding e-money over 12 months ending 31 December |
Average over the period from authorisation to 31 December. |
G.11 Small electronic money institutions |
Flat fee |
Not applicable. |
G.15 Issuer of regulated covered bonds |
Value as at 31 December |
Not applicable. |
G.20 Consumer buy-to-let (CBTL) lender |
Flat fee |
Not applicable. |
G.21 CBTL adviser and arranger |
This table belongs to COLL 4.2.2 R (Publishing the prospectus).
Document status |
|||||
1 |
A statement that the document is the prospectus of the authorised fund valid as at a particular date (which shall be the date of the document). |
||||
Authorised fund |
|||||
2 |
A description of the authorised fund including: |
||||
(a) |
its name; |
||||
29(aa) |
its FCA product reference number (PRN); |
||||
(b) |
|||||
3(ba) |
whether it is a UCITS scheme or a non-UCITS retail scheme; |
||||
17(bb) |
a statement that unitholders in an AUT, ICVC or co-ownership scheme21 are not liable for the debts of the authorised fund;21 |
||||
(bc) |
a statement that the scheme property of a co-ownership scheme is beneficially owned by the participants as tenants in common (or, in Scotland, is the common property of the participants);21 |
||||
(bd) |
a statement that a unitholder in a limited partnership scheme is not liable for the debts or obligations of the limited partnership scheme beyond the amount of the scheme property which is available to the authorised contractual scheme manager to meet such debts or obligations, provided that the unitholder does not take part in the management of the partnership business;21 |
||||
(be) |
a statement that the exercise of rights conferred on limited partners by FCArules does not constitute taking part in the management of the partnership business;21 |
||||
(c) |
for an ICVC, the address of its head office and the address of the place in the United Kingdom for service on the ICVC of notices or other documents required or authorised to be served on it; |
||||
(ca) |
for an ACS that is a limited partnership scheme, the address of the proposed principal place of business of the limited partnership scheme;21 |
||||
(d) |
the effective date of the authorisation order made by the FCA and relevant details of termination, if the duration of the authorised fund is limited; |
||||
(e) |
its base currency; |
||||
(f) |
for an ICVC, the maximum and minimum sizes of its capital; 18 |
||||
(g) |
the circumstances in which it may be wound up under the rules and a summary of the procedure for, and the rights of unitholders under, such a winding up; and1817 |
||||
18(h) |
if it is not an umbrella, a statement that it is a feeder UCITS, a feeder NURS, a fund of alternative investment funds or a property authorised investment fund22, where that is the case. 22 |
||||
Umbrella ICVCs or co-ownership schemes21 |
|||||
2A |
The following statements for an ICVC or a co-ownership scheme which is an umbrella:21 21 |
||||
(a) |
for an ICVC, a statement that21its sub-funds are segregated portfolios of assets and, accordingly, the assets of a sub-fund belong exclusively to that sub-fund and shall not be used to discharge directly or indirectly the liabilities of, or claims against, any other person or body, including the umbrella, or any other sub-fund, and shall not be available for any such purpose; 21 |
||||
(aa) |
for a co-ownership scheme, a statement that the property subject to a sub-fund is beneficially owned by the participants in that sub-fund as tenants in common (or, in Scotland, is the common property of the participants in that sub-fund) and must not be used to discharge any liabilities of, or meet any claims against, any person other than the participants in that sub-fund; and21 |
||||
(b) |
for an ICVC or a co-ownership scheme, a statement that21 while the provisions of the OEIC Regulations, and section 261P (Segregated liability in relation to umbrella co-ownership schemes) of the Act in the case of co-ownership schemes,21 provide for segregated liability between sub-funds, the concept of segregated liability is relatively new. Accordingly, where claims are brought by local creditors in foreign courts or under foreign law contracts, it is not yet known how those foreign courts will react to regulations 11A and 11B of the OEIC Regulations or, as the case may be, section 261P of the Act.2118 |
||||
18Umbrella Schemes |
|||||
182B |
For a UCITS scheme or non-UCITS retail scheme which is an umbrella:29 222222 |
||||
29(a) |
a statement detailing whether each specific sub-fund is a feeder UCITS, a feeder NURS, a fund of alternative investment funds or a property authorised investment fund, as appropriate; and |
||||
29(b) |
|||||
Investment objectives and policy |
|||||
3 |
The following particulars of the investment objectives and policy of the authorised fund: |
||||
(a) |
the investment objectives, including its financial objectives; |
||||
(b) |
the authorised fund's investment policy for achieving those investment objectives, including the general nature of the portfolio and, if appropriate, any intended specialisation; |
||||
(c) |
an indication of any limitations on that investment policy;22 |
||||
(c-b) |
where:33 |
||||
(i) |
a target for a scheme’s performance has been set, or a payment out of scheme property is permitted, by reference to a comparison of one or more aspects of the scheme property or price with fluctuations in the value or price of an index or indices or any other similar factor (a “target benchmark”); or33 |
||||
(ii) |
without being a target benchmark, arrangements are in place in relation to the scheme according to which the composition of the portfolio of the scheme is, or is implied to be, constrained by reference to the value, the price or the components of an index or indices or any other similar factor (a “constraining benchmark”); or33 |
||||
(iii) |
without being a target benchmark or a constraining benchmark, the scheme’s performance is compared against the value or price of an index or indices or any other similar factor (a “comparator benchmark”),33 |
||||
a statement providing sufficient information for investors to understand the choice and use of any target benchmark, constraining benchmark or comparator benchmark in relation to the scheme;33 |
|||||
(c-a) |
where no target benchmark, constraining benchmark or comparator benchmark is used, a statement to that effect and an explanation of how investors can assess the performance of the scheme;33 |
||||
22(ca) |
for an authorised fund that has indicated in its name, investment objectives or fund literature (including in any financial promotions for the fund), through use of descriptions such as 'absolute return', 'total return' or similar, an intention to deliver positive returns in all market conditions (and where there is no actual guarantee of such returns), additional statements in the authorised fund's investment objectives specifying: |
||||
(i) |
that capital is in fact at risk; |
||||
(ii) |
the investment period over which the authorised fund aims to achieve a positive return; and |
||||
(iii) |
there is no guarantee that this will be achieved over that specific, or any, time period; |
||||
(d) |
the description of assets which the capital property may consist of; |
||||
(e) |
the proportion of the capital property which may consist of an asset of any description; |
||||
(f) |
the description of transactions which may be effected on behalf of the authorised fund and an indication of any techniques and instruments or borrowing powers which may be used in the management of the authorised fund; |
||||
(g) |
a list of the eligible markets through which the authorised fund may invest or deal in accordance with COLL 5.2.10 R (2)(b) (Eligible markets: requirements); |
||||
(h) |
for an ICVC, a statement as to whether it is intended that the scheme will have an interest in any immovable property or movable property ((in accordance with COLL 5.6.4 R (2) (Investment powers: general) or COLL 5.2.8 R (2) (UCITS schemes: general)) for the direct pursuit of the ICVC's business; |
||||
(i) |
where COLL 5.2.12 R (3) (Spread: government and public securities) applies:29 |
||||
29(i) |
a prominent statement as to the fact that more than 35% in value29 of the scheme property is or may be invested in transferable securities or approved money-market instruments issued or guaranteed by a single state, local authority or public international body29; and |
||||
29(ii) |
the names of the individual states, local authorities or public international bodies issuing or guaranteeing the securities in which29 more than 35% in value of the scheme property may be invested29; |
||||
(k) |
for an authorised fund which may invest in other schemes, the extent to which the scheme property may be invested in the units of schemes which are managed by the authorised fund manager or by its associate; |
||||
(ka) |
where a scheme is a feeder scheme (other than a feeder UCITS or a feeder NURS)18,16 which (in respect of investment in units in collective investment schemes) is dedicated to units in a single collective investment scheme, details of the master scheme and the minimum (and, if relevant, maximum) investment that the feeder scheme may make in it; 1618 |
||||
(l) |
where a scheme invests principally in scheme units, deposits or derivatives, or replicates an index in accordance with COLL 5.2.31 R or COLL 5.6.23 R (Schemes replicating an index), a prominent statement regarding this investment policy; |
||||
(m) |
where derivatives transactions may be used in a scheme, a prominent statement as to whether these transactions are for the purposes of efficient portfolio management (including10hedging)10 or meeting the investment objectives or both and the possible outcome of the use of derivatives on the risk profile of the scheme; |
||||
(n) |
information concerning the profile of the typical investor for whom the scheme is designed; |
||||
(o) |
information concerning the historical performance of the scheme, comparing in particular its historical performance against each target benchmark and each constraining benchmark used in relation to the scheme,33 presented in accordance with COBS 4.6.2R (the rules on past performance); 66 |
||||
(p) |
for a non-UCITS retail scheme which invests in immovables, a statement of the countries or territories of situation of land or buildings in which the authorised fund may invest; |
||||
34(pa) |
for a fund investing in inherently illiquid assets at least the following (see FUND 3.2.2R(8) (Prior disclosure of information to investors)): |
||||
(i) |
an explanation of the risks associated with the scheme investing in inherently illiquid assets and how those risks might crystallise; |
||||
(ii) |
a description of the tools and arrangements the authorised fund manager would propose using, including those required by FCA rules, to mitigate the risks referred to in (i); and |
||||
(iii) |
an explanation of the circumstances in which those tools and arrangements would typically be deployed and the likely consequences for investors; |
||||
(q) |
for a UCITS scheme which invests a substantial portion of its assets in other schemes, a statement of the maximum level of management fees that may be charged to that UCITS scheme and to the schemes in which it invests; |
||||
5(qa) |
where the authorised fund is a qualifying money market fund, 31a statement identifying it as such a fund 15and a statement that the authorised fund's investment objectives and policies will meet the conditions specified in the definition of qualifying money market fund31; 151515 |
||||
(r) |
where the net asset value of a UCITS scheme is likely to have high volatility owing to its portfolio composition or the portfolio management techniques that may be used, a prominent statement to that effect; 16 |
||||
(s) |
for a UCITS scheme, a statement that any unitholder may obtain on request the types of information (which must be listed) referred to in COLL 4.2.3R (3) (Availability of prospectus and long report); and16 |
||||
16(t) |
for a UCITS scheme that is or is intended to be a master UCITS, a statement that it is not a feeder UCITS and will not hold units of a feeder UCITS. |
||||
Reporting, distributions and accounting dates |
|||||
4 |
Relevant details of the reporting, accounting and distribution information which includes: |
||||
(a) |
the accounting and distribution dates; |
||||
(b) |
procedures for: |
||||
(i) |
determining and applying income (including how any distributable income is paid); |
||||
(ii) |
unclaimed distributions; and |
||||
(iii) |
if relevant, calculating, paying and accounting for income equalisation; and27 |
||||
(c) |
the accounting reference date and when the long report will be published in accordance with COLL 4.5.14 R (Publication and availability of annual and half-yearly long report).27 |
||||
(d) |
[deleted]27 |
||||
Characteristics of the units |
|||||
5 |
Information as to: |
||||
(a) |
where there is more than one class of unit in issue or available for issue, the name of each such class and the rights attached to each class in so far as they vary from the rights attached to other classes; |
||||
(b) |
where the instrument of incorporation of an ICVC29 provides for the issue of bearer certificates, that fact and what procedures will operate for them; 2323 |
||||
(c) |
how unitholders may exercise their voting rights and what these amount to; |
||||
(d) |
where a mandatory redemption, cancellation or conversion of units from one class to another may be required, in what circumstances it may be required; and |
||||
(e) |
for an AUT, the fact that the nature of the right represented by units is that of a beneficial interest under a trust. |
||||
215A |
ACSs: UCITS and NURS eligible investors |
||||
(a) |
A statement that units may not be issued to a person other than a: |
||||
(i) |
|||||
(ii) |
|||||
(iii) |
|||||
(b) |
A statement that the authorised contractual scheme manager must redeem units as soon as practicable after becoming aware that those units are vested in anyone (whether as a result of subscription or transfer of units) other than a person meeting the criteria in paragraph 5A(a). |
||||
215B |
ACSs: UCITS and NURS transfer of units |
||||
(a) |
A statement whether the transfer of units in the ACSscheme is either: |
||||
(i) |
prohibited; or |
||||
(ii) |
allowed; |
||||
by the instrument constituting the fund23 and prospectus. 23 |
|||||
(b) |
Where transfer of units is allowed by the instrument constituting the fund23 and prospectus in accordance with (a)(ii), a statement that units may only be transferred in accordance with the conditions specified by FCArules, including that units may not be transferred to a person other than a: 23 |
||||
(i) |
|||||
(ii) |
|||||
(iii) |
|||||
(c) |
For a co-ownership scheme which is an umbrella, a statement in accordance with (5B)(a)(i) or (ii) and, where appropriate, a statement in accordance with (5B)(b), must also be made for the sub-funds. Where individual sub-funds have differing policies in relation to transfer of units, separate statements are required. |
||||
Authorised fund manager |
|||||
6 |
The following particulars of the authorised fund manager: |
||||
(a) |
its name; |
||||
(b) |
the nature of its corporate form; |
||||
(c) |
the date of its incorporation; |
||||
(d) |
the address of its registered office; |
||||
(e) |
the address of its head office, if that is different from the address of its registered office; |
||||
(f) |
if neither its registered office nor its head office is in the United Kingdom, the address of its principal place of business in the United Kingdom; |
||||
(g) |
if the duration of its corporate status is limited, when that status will or may cease; and |
||||
(h) |
the amount of its issued share capital and how much of it is paid up. |
||||
Directors of an ICVC, other than the ACD |
|||||
7 |
Other than for the ACD: |
||||
(a) |
the names and positions in the ICVC of any other directors (if any); and |
||||
(b) |
the manner, amount and calculation of the remuneration of such directors. |
||||
Depositary |
|||||
8 |
The following information and 25particulars concerning 25the depositary: |
||||
(a) |
its name; |
||||
(b) |
the nature of its corporate form; |
||||
(c) |
the address of its registered office; |
||||
(d) |
the address of its head office, if that is different from the address of its registered office; |
||||
(e) |
if neither its registered office nor its head office is in the United Kingdom, the address of its principal place of business in the United Kingdom;25 |
||||
(f) |
a description of its duties and conflicts of interest that may arise between the depositary and:25 |
||||
25(i) |
the scheme; or |
||||
25(ii) |
the unitholders in the scheme; or |
||||
25(iii) |
|||||
25(g) |
(i) |
a description of any safekeeping functions delegated by the depositary; |
|||
(ii) |
a description of any conflicts of interest that may arise from such delegation; and |
||||
(iii) |
for a UCITS scheme, a list showing the identity of each delegate and sub-delegate; and |
||||
25(h) |
for a UCITS scheme, a statement that up-to-date information regarding the points covered under (a),(f) and (g), above, will be made available to unitholders on request. |
||||
Investment adviser |
|||||
9 |
If an investment adviser is retained in connection with the business of an authorised fund: |
||||
(a) |
its name; and |
||||
(b) |
where it carries on a significant activity other than providing services to the authorised fund as an investment adviser, what that significant activity is. |
||||
Auditor |
|||||
10 |
The name of the auditor of the authorised fund. |
||||
Contracts and other relationships with parties |
|||||
11 |
The following relevant details: |
||||
(a) |
for an ICVC: |
||||
(i) |
a summary of the material provisions of the contract between the ICVC and the ACD3 which may be relevant to unitholders including provisions (if any) relating to remuneration, termination, compensation on termination and indemnity; 3 |
||||
(ii) |
the main business activities of each of the directors (other than those connected with the business of the ICVC) where these are of significance to the ICVC's business; |
||||
(iii) |
if any director is a body corporate in a group of which any other corporate director of the ICVC is a member, a statement of that fact; 3 |
||||
(iv) |
the main terms of each contract of service between the ICVC and a director in summary form; and3 |
||||
3(v) |
for an ICVC that does not hold annual general meetings, a statement that copies of contracts of service between the ICVC and its directors, including the ACD, will be provided to a unitholder on request; |
||||
(b) |
the names of the directors of the authorised fund manager and the main business activities of each of the directors (other than those connected with the business of the authorised fund) where these are of significance to the authorised fund's business; |
||||
(c) |
a summary of the material provisions of the contract between the ICVC or the manager of the AUT and the depositary which may be relevant to unitholders, including provisions relating to the remuneration of the depositary; |
||||
21(ca) |
in the case of an ACS, a summary of the material provisions of the contracts between: |
||||
(i) |
the authorised fund manager and the nominated partner (if any); and |
||||
(ii) |
the authorised fund manager and depositary; |
||||
which may be relevant to unitholders, including provisions relating to the remuneration of the depositary; |
|||||
(d) |
if an investment adviser retained in connection with the business of the authorised fund is a body corporate in a group of which any director of the ICVC or the authorised fund manager21 of the AUTor ACS21 is a member, that fact; 21 |
||||
(e) |
a summary of the material provisions of any contract between the authorised fund manager or the ICVC and any investment adviser which may be relevant to unitholders; |
||||
(f) |
if an investment adviser retained in connection with the business of the authorised fund has the authority of the authorised fund manager or the ICVC to make decisions on behalf of the authorised fund manager or the ICVC, that fact and a description of the matters in relation to which it has that authority; |
||||
(g) |
a list of:16 16 |
||||
16(i) |
the functions which the authorised fund manager has delegated in accordance with FCA rules or, for an EEA UCITS management company, in accordance with applicable Home State measures implementing article 13 of the UCITS Directive; and |
||||
16(ii) |
the person to whom such functions have been delegated; and |
||||
(h) |
in what capacity (if any), the authorised fund manager acts in relation to any other regulated collective investment schemes2 and the name of such schemes. 2 |
||||
Register of Unitholders |
|||||
12 |
Details of: |
||||
(a) |
the address in the United Kingdom where the register of unitholders, and where relevant the plan register is kept and can be inspected by unitholders; and |
||||
(b) |
the registrar's name and address. |
||||
Payments out of scheme property |
|||||
13 |
In relation to each type of payment from the scheme property, details of: |
||||
(a) |
who the payment is made to; |
||||
(b) |
what the payment is for; |
||||
(c) |
the rate or amount where available; |
||||
(d) |
how it will be calculated and accrued; |
||||
(e) |
when it will be paid; and |
||||
(f) |
where a performance fee is taken, examples of its operation in plain English and the maximum it can amount to. |
||||
Allocation of payments |
|||||
14 |
If, in accordance with COLL 6.7.10 R4 (Allocation of payments to income or capital), the authorised fund manager and the depositary have agreed that all or part of any income expense payments may be treated as a capital expense: |
||||
(a) |
that fact; |
||||
(b) |
the policy for allocation of these payments; and |
||||
(c) |
a statement that this policy may result in capital erosion or constrain capital growth. |
||||
Moveable and immovable property (ICVC only) |
|||||
15 |
An estimate of any expenses likely to be incurred by the ICVC in respect of movable and immovable property in which the ICVC has an interest. |
||||
Valuation and pricing of scheme property |
|||||
16 |
In relation to the valuation of scheme property and pricing of units1: 1 |
||||
(a) |
either:1 1 |
||||
(i) |
in the case of a single-priced authorised fund,1 a provision that there must be only a single price for any unit as determined from time to time by reference to a particular valuation point; or1 |
||||
(ii) |
1in the case of a dual-priced authorised fund, the authorised fund manager's policy for determining prices for the sale and redemption of units by reference to a particular valuation point and an explanation of how those prices may differ; |
||||
(b) |
details of: |
||||
(i) |
how the value of the scheme property is to be determined in relation to each purpose for which the scheme property must be valued; |
||||
(ii) |
how frequently and at what time or times of the day the scheme property will be regularly valued for dealing purposes and a description of any circumstance in which the scheme property may be specially valued; |
||||
(iii) |
where relevant, how the price of units of each class will be determined for dealing purposes; 1 |
||||
(iv) |
where and at what frequency the most recent prices will be published; and |
||||
(v) |
1where relevant in the case of a dual-priced authorised fund, an explanation of what is meant by large deals and 29the authorised fund manager's policy in relation to large deals; and |
||||
(c) |
if provisions in (a) and (b) do not take effect when the instrument constituting the fund23 or (where appropriate) supplemental trust deed takes effect, a statement of the time from which those provisions are to take effect or how it will be determined. 23 |
||||
Dealing |
|||||
17 |
The following particulars: |
||||
(a) |
the procedures, the dealing periods and the circumstances in which the authorised fund manager will effect: |
||||
(i) |
the sale and redemption of units and the settlement of transactions (including the minimum number or value of units which one person may hold or which may be subject to any transaction of sale or redemption) for each class of unit in the authorised fund; and |
||||
(ii) |
any direct issue or cancellation of units by an ICVC or by the depositary of an AUT or ACS21 (as appropriate) through the authorised fund manager in accordance with COLL 6.2.7R (2) (Issue and cancellation of units through an authorised fund manager); 21 |
||||
(b) |
the circumstances in which the redemption of units may be suspended; |
||||
(c) |
whether certificates will be issued in respect of registered units; |
||||
(d) |
the circumstances in which the authorised fund manager may arrange for, and the procedure for the issue or cancellation of units in specie; |
||||
(e) |
the investment exchanges (if any) on which units in the scheme are listed or dealt; |
||||
(f) |
the circumstances and conditions for issuing units in an authorised fund which limit the issue of any class of units in accordance with 13COLL 6.2.18 R13 (Limited issue); |
||||
(g) |
the circumstances and procedures for the limitation or deferral of redemptions in accordance with 13COLL 6.2.19 R13 (Limited redemption) or 13COLL 6.2.21 R13 (Deferred redemption); 12 |
||||
(h) |
in a prospectus available during the period of any initial offer: |
||||
(i) |
the length of the initial offer period; |
||||
(ii) |
the initial price of a unit, which must be in the base currency; |
||||
(iii) |
the arrangements for issuing units during the initial offer, including the authorised fund manager's intentions on investing the subscriptions received during the initial offer; |
||||
(iv) |
the circumstances when the initial offer will end; |
||||
(v) |
whether units will be sold or issued in any other currency; and12 |
||||
(vi) |
any other relevant details of the initial offer12; 30 12 |
||||
(i) |
whether a unitholder may effect transfer of title to units on the authority of an electronic communication and if so the conditions that must be satisfied in order to effect a transfer; and30 12 |
||||
30(j) |
if the authorised fund manager deals as principal in units of the scheme and holds them for that purpose, a statement of its policy for doing so and, where applicable: |
||||
30(i) |
a description of when the authorised fund manager may retain any profits it earns and absorb any losses it incurs for these activities; and |
||||
30(ii) |
a statement of non-accountability as referred to in COLL 6.7.16G. |
||||
Dilution |
|||||
18 |
In the case of a single-priced authorised fund, details1 of what is meant by dilution including: |
||||
(a) |
a statement explaining: |
||||
(i) |
that it is not possible to predict accurately whether dilution is likely to occur; and |
||||
(ii) |
which of the policies the authorised fund manager is adopting under COLL 6.3.8 (1) (Dilution) together with an explanation of how this policy may affect the future growth of the authorised fund; and |
||||
(b) |
if the authorised fund manager may require a dilution levy or make a dilution adjustment, a statement of: |
||||
(i) |
the authorised fund manager's policy in deciding when to require a dilution levy, including what is meant by large deals and 29the authorised fund manager's policy on large deals, or when to make a dilution adjustment; |
||||
(ii) |
the estimated rate or amount of any dilution levy or dilution adjustment based either on historical data or future projections; and |
||||
(iii) |
the likelihood that the authorised fund manager may require a dilution levy or make a dilution adjustment and the basis (historical or projected) on which the statement is made. |
||||
SDRT provision |
|||||
19 |
|||||
[deleted]29 |
|||||
Forward pricing29 |
|||||
20 |
An explanation of forward pricing29 under COLL 6.3.9 (Forward 29pricing). |
||||
Preliminary charge |
|||||
21 |
Where relevant, a statement authorising the authorised fund manager to make a preliminary charge and specifying the basis for and current amount or rate of that charge. |
||||
Redemption charge |
|||||
22 |
Where relevant, a statement authorising the authorised fund manager to deduct a redemption charge out of the proceeds of redemption; and if the authorised fund manager makes a redemption charge: |
||||
(a) |
the current amount of that charge or if it is variable, the rate or method of calculating it; |
||||
(b) |
if the amount, rate or method has been changed, that details of any previous amount, rate or method may be obtained from the authorised fund manager on request; and |
||||
(c) |
how the order in which units acquired at different times by a unitholder is to be determined so far as necessary for the purposes of the imposition of the redemption charge. |
||||
9Property Authorised Investment Funds |
|||||
922A |
For a property authorised investment fund, a statement that: |
||||
(1) |
[deleted]22 22 |
||||
(2) |
no body corporate may seek to obtain or intentionally maintain a holding of more than19 10% of the net asset value of the fund; and 19 |
||||
(3) |
in the event that the authorised fund manager reasonably considers that a body corporate holds more than 10% of the net asset value of the fund, the authorised fund manager is entitled to delay any redemption or cancellation of units if the authorised fund manager reasonably considers such action to be: |
||||
(a) |
necessary in order to enable an orderly reduction of the holding to below 10%; and |
||||
(b) |
in the interests of the unitholders as a whole. |
||||
18 | |||||
18 | 18 | ||||
General information |
|||||
23 |
Details of: |
||||
(a) |
the address at which copies of the instrument constituting the fund,23 any amending instrument and the most recent annual and half-yearly long reports may be inspected and from which copies may be obtained; 23 |
||||
(b) |
the manner in which any notice or document will be served on unitholders; |
||||
(c) |
the extent to which and the circumstances in which: |
||||
(i) |
the scheme is liable to pay or suffer tax on any appreciation in the value of the scheme property or on the income derived from the scheme property; and |
||||
(ii) |
deductions by way of withholding tax may be made from distributions of income to unitholders and payments made to unitholders on the redemption of units; 3 |
||||
(d) |
for a UCITS scheme, any possible fees or expenses not described in paragraphs 13 to 22, distinguishing between those to be paid by a unitholder and those to be paid out of scheme property; and3 3 |
||||
3(e) |
for an ICVC, whether or not annual general meetings will be held. |
||||
Information on the umbrella |
|||||
24 |
In the case of a scheme which is an umbrella with two or more sub-funds11, the following information: |
||||
(a) |
that a unitholder is entitled to exchange units in one sub-fund for units in any other sub-fund (other than a sub-fund which has limited the issue of units); |
||||
(b) |
that an exchange of units in one sub-fund for units in any other sub-fund is treated as a redemption and sale and will, for persons subject to United Kingdom taxation, be a realisation for the purposes of capital gains taxation; |
||||
(c) |
that in no circumstances will a unitholder who exchanges units in one sub-fund for units in any other sub-fund be given a right by law to withdraw from or cancel the transaction; |
||||
(d) |
the policy for allocating between sub-funds any assets of, or costs, charges and expenses payable out of, the scheme property which are not attributable to any particular sub-fund; |
||||
(e) |
what charges, if any, may be made on exchanging units in one sub-fund for units in any other sub-fund; and11 |
||||
(f) |
for each sub-fund, the currency in which the scheme property allocated to it will be valued and the price of units calculated and payments made, if this currency is not the base currency of the scheme which is an umbrella.11 |
||||
(g) |
[deleted]11 11 |
||||
Application of the prospectus contents to an umbrella |
|||||
25 |
For a scheme which is an umbrella, information required must be stated: |
||||
(a) |
in relation to each sub-fund where the information for any sub-fund differs from that for any other; and |
||||
(b) |
for the umbrella as a whole, but only where the information is relevant to the umbrella as a whole.16 |
||||
16Information on a feeder UCITS |
|||||
1625A |
In the case of a feeder UCITS, the following information: |
||||
(a) |
a declaration that the feeder UCITS is a feeder of a particular master UCITS and as such permanently invests at least 85% in value of the scheme property in units of that master UCITS; |
||||
(b) |
the investment objective and policy, including the risk profile; and whether the performance records of the feeder UCITS and the master UCITS are identical, or to what extent and for which reasons they differ, including a description of how the balance of the scheme property which is not invested in units of the master UCITS is invested in accordance with COLL 5.8.3 R (Balance of scheme property: investment restrictions on a feeder UCITS); |
||||
(c) |
a brief description of the master UCITS, its organisation, its investment objective and policy, including the risk profile, and an indication of how the prospectus of the master UCITS may be obtained; |
||||
(d) |
a summary of the master-feeder agreement or where applicable, the internal conduct of business rules referred to in COLL 11.3.2 R (2) (Master-feeder agreement and internal conduct of business rules); |
||||
(e) |
how the unitholders may obtain further information on the master UCITS and the master-feeder agreement; |
||||
(f) |
a description of all remuneration or reimbursement of costs payable by the feeder UCITS by virtue of its investment in units of the master UCITS, as well as the aggregate charges of the feeder UCITS and the master UCITS; and |
||||
(g) |
a description of the tax implications of the investment into the master UCITS for the feeder UCITS. |
||||
[Note: article 63(1) of the UCITS Directive]18 |
|||||
18Information on a feeder NURS |
|||||
1825B |
In the case of a feeder NURS, the following information: |
||||
(a) |
a declaration that the feeder NURS is a feeder of a particular qualifying master scheme and as such is dedicated to units in a single qualifying master scheme and the minimum (and, if relevant, maximum) investment that the feeder NURS may make in its qualifying master scheme; |
||||
(b) |
the investment objective and policy of the feeder NURS, including its risk profile; and whether the performance records of the feeder NURS and the qualifying master scheme are identical, or to what extent and for which reasons they differ, including a description of how the balance of the scheme property which is not invested in units of the qualifying master scheme is invested in accordance with COLL 5.6.7 R (6A) (Spread: general); |
||||
(c) |
a brief description of the qualifying master scheme, its organisation, its investment objective and policy, including the risk profile, and an indication of how the prospectus of the qualifying master scheme may be obtained; |
||||
(d) |
how the unitholders may obtain further information on the qualifying master scheme; |
||||
(e) |
a description of all remuneration or reimbursement of costs payable by the feeder NURS by virtue of its investment in units of the qualifying master scheme, as well as the aggregate charges of the feeder NURS and the qualifying master scheme; and |
||||
(f) |
a description of the tax implications of the investment into the qualifying master scheme for the feeder NURS. |
||||
Marketing in another EEA state |
|||||
26 |
A prospectus of a UCITS scheme which is prepared for the purpose of marketing units in a EEA State other than the United Kingdom, must give details as to: |
||||
(a) |
what special arrangements have been made: |
||||
(i) |
for paying in that EEA State amounts distributable to unitholders resident in that EEA State; |
||||
(ii) |
for redeeming in that EEA State the units of unitholders resident in that EEA State; |
||||
(iii) |
for inspecting and obtaining copies in that EEA State of the instrument constituting the fund23 and amendments to it, the prospectus and the annual and half-yearly long report; and 23 |
||||
(iv) |
|||||
(b) |
how the ICVC or the authorised fund manager of an AUT or ACS21 will publish in that EEA State notice: 21 |
||||
(i) |
that the annual and half-yearly long report are available for inspection; |
||||
(ii) |
that a distribution has been declared; |
||||
(iii) |
of the calling of a meeting of unitholders; and |
||||
(iv) |
of the termination of the authorised fund or the revocation of its authorisation. |
||||
7Investment in overseas8 property through an intermediate holding vehicle |
|||||
726A |
7If investment in an overseas8 immovable is to be made through an intermediate holding vehicle or a series of intermediate holding vehicles, a statement disclosing the existence of that intermediate holding vehicle or series of intermediate holding vehicles and confirming that the purpose of that intermediate holding vehicle or series of intermediate holding vehicle is to enable the holding of overseas8 immovables by the scheme. |
||||
Additional information |
|||||
27 |
Any other material information which is within the knowledge of the directors of an ICVC or the authorised fund manager of an AUT or ACS, or which the directors or authorised fund manager21 would have obtained by making reasonable enquiries, including but not confined to, the following matters: 21 |
||||
(a) |
information which investors and their professional advisers would reasonably require, and reasonably expect to find in the prospectus, for the purpose of making an informed judgement about the merits of investing in the authorised fund and the extent and characteristics of the risks accepted by so participating; |
||||
(b) |
a clear and easily understandable explanation of any risks which investment in the authorised fund may reasonably be regarded as presenting for reasonably prudent investors of moderate means; |
||||
(c) |
if there is any arrangement intended to result in a particular capital or income return from a holding of units in the authorised fund or any investment objective of giving protection to the capital value of, or income return from, such a holding: |
||||
(i) |
details of that arrangement or protection; |
||||
(ii) |
for any related guarantee, sufficient details about the guarantor and the guarantee to enable a fair assessment of the value of the guarantee; |
||||
(iii) |
a description of the risks that could affect achievement of that return or protection; and |
||||
(iv) |
details of the arrangements by which the authorised fund manager will notify unitholders of any action required by the unitholders to obtain the benefit of the guarantee; and |
||||
(d) |
whether any notice has been given to unitholders of the authorised fund manager intention to propose a change to the scheme and if so, its particulars. |
||||
Remuneration Policy |
|||||
2528 |
For a UCITS scheme and in relation to UCITS Remuneration Code staff: |
||||
(a) |
up-to-date details of the remuneration policy including, but not limited to: |
||||
(i) |
a description of how remuneration and benefits are calculated; and |
||||
(ii) |
the identities of persons responsible for awarding the remuneration and benefits, including the composition of the remuneration committee, where such a committee exists; or |
||||
(b) |
a summary of the remuneration policy and a statement that: |
||||
(i) |
up-to-date details of the matters set out in (a) above are available by means of a website, including a reference to that website; and |
||||
(ii) |
a paper copy of that website information will be made available free of charge upon request. |