COLL 1
Introduction
COLL 1.1
Applications and purpose
- 01/12/2004
Application
COLL 1.1.1
See Notes
- 01/07/2011
- Past version of COLL 1.1.1 before 01/07/2011
COLL 1.1.1A
See Notes
- 01/11/2007
EEA territorial scope: compatibility with European law
COLL 1.1.1B
See Notes
- 01/07/2011
EEA UCITS management companies of UCITS schemes
COLL 1.1.1C
See Notes
- 01/07/2011
Purpose
COLL 1.1.2
See Notes
- 01/07/2011
- Past version of COLL 1.1.2 before 01/07/2011
UCITS management company and product passport
COLL 1.1.2A
See Notes
- 01/07/2011
The Collective Investment Schemes Information Guide
COLL 1.1.3
See Notes
- 01/04/2004
COLL 1.2
Types of authorised fund
- 01/12/2004
Types of authorised fund
COLL 1.2.1
See Notes
- 27/04/2012
- Past version of COLL 1.2.1 before 27/04/2012
Umbrella schemes
COLL 1.2.1A
See Notes
- 01/07/2011
Types of authorised fund - explanation
COLL 1.2.2
See Notes
- 27/04/2012
- Past version of COLL 1.2.2 before 27/04/2012
UCITS schemes
COLL 1.2.3
See Notes
- 01/07/2011
Master UCITS
COLL 1.2.4
See Notes
- 01/07/2011
COLL 2
Authorised fund applications
COLL 2.1
Authorised fund applications
- 01/12/2004
Application
COLL 2.1.1
See Notes
- 01/04/2004
Purpose
COLL 2.1.2
See Notes
- 01/04/2004
Explanation
COLL 2.1.3
See Notes
- 01/04/2004
Specific requirements on application
COLL 2.1.4
See Notes
- 01/04/2004
Application by an EEA UCITS management company to manage a UCITS scheme
COLL 2.1.5
See Notes
- 01/07/2011
Export chapter as
COLL 3
Constitution
COLL 3.1
Introduction
- 01/12/2004
Application
COLL 3.1.1
See Notes
- 01/04/2004
Purpose
COLL 3.1.2
See Notes
- 01/04/2004
COLL 3.2
The instrument constituting the scheme
- 01/12/2004
Application
COLL 3.2.1
See Notes
- 01/04/2004
Relationship between the instrument constituting the scheme and the rulesRelationship between the instrument constituting the fund and the rules
COLL 3.2.2
See Notes
- 01/04/2004
The trust deed for AUTs
COLL 3.2.3
See Notes
- 01/04/2004
Matters which must be included in the instrument constituting the scheme
COLL 3.2.4
See Notes
- 01/04/2004
The instrument constituting the scheme: OEIC Regulations and trust law requirements
COLL 3.2.5
See Notes
- 01/04/2004
Table: contents of the instrument constituting the scheme
COLL 3.2.6
See Notes
Name of scheme | ||
1 | A statement of: | |
(1) | the name of the authorised fund; and | |
(2) | whether the authorised fund is a UCITS scheme or a non-UCITS retail scheme. | |
Investment powers in eligible markets | ||
2 | A statement that, subject to any restriction in the rules in this sourcebook or the instrument constituting the scheme , 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). | |
Unitholder's liability to pay | ||
3 | A provision that a unitholder 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. | |
Base currency | ||
4 | A statement of the base currency of the scheme. | |
Valuation and pricing | ||
5 | A statement setting out the basis for the valuation and pricing of the scheme. | |
Duration of the scheme | ||
6 | If the scheme is to be wound up after a particular period expires, a statement to that effect. | |
Object of the scheme | ||
7 | A statement: | |
(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. | |
7A | 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. | |
Property Authorised Investment Funds | ||
7B | 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 in accordance with 18 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. | ||
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) as to the individual states or bodies in which over 35% of the value of the scheme may be invested in government and public securities. | |
Classes of unit | ||
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 trustee | ||
11 | Where relevant, a statement authorising the issue or cancellation of units to take place through the ICVC or trustee directly. | |
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) | authorising the issue of bearer certificates if any, and how such holders are to identify themselves; and | |
(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. | |
ICVCs: Charges and expenses | ||
22 | A statement that charges or expenses of the ICVC may be taken out of the scheme property. | |
ICVCs: Umbrella schemes - principle of limited recourse | ||
22A | 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. | |
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. | |
Investment in overseas property through an intermediate holding vehicle | ||
28 | If investment in an overseas 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 overseas immovables by the scheme. |
- 27/04/2012
- Past version of COLL 3.2.6 before 27/04/2012
Umbrella scheme with only one sub-fund
COLL 3.2.7
See Notes
- 06/08/2009
- Past version of COLL 3.2.7 before 06/08/2009
UCITS obligations
COLL 3.2.8
See Notes
- 01/07/2011
- Past version of COLL 3.2.8 before 01/07/2011
COLL 3.3
Units
- 01/12/2004
Application
COLL 3.3.1
See Notes
- 01/04/2004
Classes of units
COLL 3.3.2
See Notes
- 01/04/2004
Currency class units
COLL 3.3.3
See Notes
- 01/04/2004
Currency class units: requirements
COLL 3.3.4
See Notes
- 01/04/2004
Rights of unit classes
COLL 3.3.5
See Notes
- 06/03/2009
- Past version of COLL 3.3.5 before 06/03/2009
Hedging of unit classes
COLL 3.3.5A
See Notes
Guidance on hedging of unit classes
COLL 3.3.5B
See Notes
Requirement: larger and smaller denomination shares in an ICVC
COLL 3.3.6
See Notes
- 01/04/2004
Characteristics of larger and smaller denomination shares in an ICVC
COLL 3.3.7
See Notes
- 01/04/2004
Sub-division and consolidation of units
COLL 3.3.8
See Notes
- 01/04/2004
Guarantees and capital protection
COLL 3.3.9
See Notes
- 01/04/2004
Switching rights: umbrella schemes
COLL 3.3.10
See Notes
COLL 4
Investor Relations
COLL 4.1
Introduction
- 01/12/2004
Application
COLL 4.1.1
See Notes
- 01/04/2004
Purpose
COLL 4.1.2
See Notes
- 01/04/2004
COLL 4.2
Pre-sale notifications
- 01/12/2004
Application
COLL 4.2.1
See Notes
- 01/04/2004
Publishing the prospectus
COLL 4.2.2
See Notes
- 01/04/2004
Provision and filing of the prospectus
COLL 4.2.3
See Notes
- 01/07/2011
- Past version of COLL 4.2.3 before 01/07/2011
Provision and filing of the prospectus of a master UCITS
COLL 4.2.3A
See Notes
- 01/07/2011
Feeder NURS: provision of the prospectus of the qualifying master scheme
COLL 4.2.3B
See Notes
- 27/04/2012
False or misleading prospectus
COLL 4.2.4
See Notes
- 01/04/2004
Table: contents of the prospectus
COLL 4.2.5
See Notes
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; | ||
(b) | whether it is an ICVC or an AUT; | ||
(ba) | whether it is a UCITS scheme or a non-UCITS retail scheme; | ||
(bb) | a statement that unitholders are not liable for the debts of the authorised fund. | ||
(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; | ||
(d) | the effective date of the authorisation order made by the FSA 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; | ||
(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; and | ||
(h) | if it is not an umbrella, a statement that it is a feeder UCITS, a feeder NURS, or a fund of alternative investment funds, where that is the case. | ||
Umbrella ICVCs | |||
2A | For an ICVC which is an umbrella, a statement that: | ||
(a) | 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; and | ||
(b) | while the provisions of the OEIC Regulations 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. | ||
Umbrella Schemes | |||
2B | For a UCITS scheme or non-UCITS retail scheme which is an umbrella, a statement detailing whether each specific sub-fund is a feeder UCITS, a feeder NURS or a fund of alternative investment funds, as appropriate. | ||
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; | ||
(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, a prominent statement as to the fact that more than 35% of the scheme property is or may be invested in government and public securities and the names of the individual states, local authorities or public international bodies in whose securities the authorised fund may invest more than 35% of the scheme property; | ||
(j) | the policy in relation to the exercise of borrowing powers by the authorised fund; | ||
(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), 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; | ||
(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 (includinghedging) 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 presented in accordance with COBS 4.6.2 R (the rules on past performance); | ||
(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; | ||
(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; | ||
(qa) | where the authorised fund is a qualifying money market fund, short-term money market fund or money market fund, a statement identifying it as such a fund 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, short-term money market fund or money market fund, as appropriate; | ||
(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; | ||
(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); and | ||
(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; | ||
(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); and | ||
(d) | when the short report will be sent to unitholders in accordance with COLL 4.5.13 R (Provision of short report). | ||
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 constituting the scheme provides for the issue of bearer certificates, that fact and what procedures will operate for them; | ||
(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. | ||
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 particulars of the 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; and | ||
(f) | a description of its principal business activity. | ||
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 ACD which may be relevant to unitholders including provisions (if any) relating to remuneration, termination, compensation on termination and indemnity; | ||
(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; | ||
(iv) | the main terms of each contract of service between the ICVC and a director in summary form; and | ||
(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; | ||
(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 manager of the AUT is a member, that fact; | ||
(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: | ||
(i) | the functions which the authorised fund manager has delegated in accordance with FSA rules or, for an EEA UCITS management company, in accordance with applicable Home State measures implementing article 13 of the UCITS Directive; and | ||
(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 schemes and the name of such schemes. | ||
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 R (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 units: | ||
(a) | either: | ||
(i) | in the case of a single-priced authorised fund, 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; or | ||
(ii) | in 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; | ||
(iv) | where and at what frequency the most recent prices will be published; and | ||
(v) | where relevant in the case of a dual-priced authorised fund, the 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 scheme 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. | ||
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 trustee (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); | ||
(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 COLL 6.2.18 R (Limited issue); | ||
(g) | the circumstances and procedures for the limitation or deferral of redemptions in accordance with COLL 6.2.19 R (Limited redemption) or COLL 6.2.21 R (Deferred redemption); | ||
(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; and | ||
(vi) | any other relevant details of the initial offer; and | ||
(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. | ||
Dilution | |||
18 | In the case of a single-priced authorised fund, details 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 the 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 | An explanation of: | ||
(a) | what is meant by stamp duty reserve tax, SDRT provision and large deals; and | ||
(b) | the authorised fund manager's policy on imposing an SDRT provision including its policy on large deals, and the occasions, and the likely frequency of the occasions, in which an SDRT provision may be imposed and the maximum rate of it (a usual rate may also be stated). | ||
Forward and historic pricing | |||
20 | The authorised fund manager's normal basis of pricing under COLL 6.3.7 (Forward and historic pricing). | ||
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. | ||
Property Authorised Investment Funds | |||
22A | 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 than10% 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. | ||
General information | |||
23 | Details of: | ||
(a) | the address at which copies of the instrument constituting the scheme, any amending instrument and the most recent annual and half-yearly long reports may be inspected and from which copies may be obtained; | ||
(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; | ||
(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; and | ||
(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-funds, 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; and | ||
(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. | ||
(g) | [deleted] | ||
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. | ||
Information on a feeder UCITS | |||
25A | 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] | |||
Information on a feeder NURS | |||
25B | 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 scheme and amendments to it, the prospectus and the annual and half-yearly long report; and | ||
(iv) | for making public the price of units of each class; and | ||
(b) | how the ICVC or the manager of an AUT will publish in that EEA State notice: | ||
(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. | ||
Investment in overseas property through an intermediate holding vehicle | |||
26A | If investment in an overseas 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 overseas immovables by the scheme. | ||
Additional information | |||
27 | Any other material information which is within the knowledge of the directors of an ICVC or the manager of an AUT, or which the directors or manager would have obtained by making reasonable enquiries, including but not confined to, the following matters: | ||
(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. |
- 01/10/2012
- Past version of COLL 4.2.5 before 01/10/2012
Guidance on contents of the prospectus
COLL 4.2.6
See Notes
- 06/03/2010
- Past version of COLL 4.2.6 before 06/03/2010
COLL 4.3
Approvals and notifications
- 01/12/2004
Application
COLL 4.3.1
See Notes
- 01/04/2004
Explanation
COLL 4.3.2
See Notes
- 01/04/2004
Diagram: Change event
COLL 4.3.3
See Notes
- 01/04/2004
Fundamental change requiring prior approval by meeting
COLL 4.3.4
See Notes
- 01/04/2004
Guidance on fundamental changes
COLL 4.3.5
See Notes
- 01/04/2004
Significant change requiring pre-event notification
COLL 4.3.6
See Notes
- 01/04/2004
Appointment of a new ACD or manager
COLL 4.3.6A
See Notes
- 01/07/2011
Guidance on significant changes
COLL 4.3.7
See Notes
- 01/07/2011
- Past version of COLL 4.3.7 before 01/07/2011
Notifiable changes
COLL 4.3.8
See Notes
- 01/04/2004
Guidance on notifiable changes
COLL 4.3.9
See Notes
- 01/04/2004
Appointment of an AFM without prior written notice to unitholders
COLL 4.3.10
See Notes
- 01/07/2011
Change events relating to feeder UCITS and feeder NURS
COLL 4.3.11
See Notes
COLL 4.3.12
See Notes
COLL 4.3.13
See Notes
COLL 4.4
Meetings of unitholders and service of notices
- 01/12/2004
Application
COLL 4.4.1
See Notes
- 01/04/2004
General meetings
COLL 4.4.2
See Notes
- 01/04/2004
Class meetings
COLL 4.4.3
See Notes
- 01/04/2004
Special meaning of unitholder in COLL 4.4
COLL 4.4.4
See Notes
- 01/04/2004
Notice of general meetings
COLL 4.4.5
See Notes
- 01/04/2004
Quorum
COLL 4.4.6
See Notes
- 01/04/2004
Resolutions
COLL 4.4.7
See Notes
- 06/04/2006
- Past version of COLL 4.4.7 before 06/04/2006
Voting rights
COLL 4.4.8
See Notes
- 06/04/2006
- Past version of COLL 4.4.8 before 06/04/2006
Right to demand a poll
COLL 4.4.9
See Notes
- 01/04/2004
Proxies
COLL 4.4.10
See Notes
- 01/04/2004
Chairman, adjournment and minutes
COLL 4.4.11
See Notes
adjourn the meeting from time to time and from place to place.
Notices to unitholders
COLL 4.4.12
See Notes
Other notices
COLL 4.4.13
See Notes
References to writing and electronic documents
COLL 4.4.14
See Notes
- 01/04/2004
Service of notice Regulations
COLL 4.4.15
See Notes
- 01/04/2004
COLL 4.5
Reports and accounts
- 01/12/2004
Application
COLL 4.5.1
See Notes
- 01/04/2004
Explanation
COLL 4.5.2
See Notes
- 01/04/2004
Preparation of long and short reports
COLL 4.5.3
See Notes
- 06/10/2006
- Past version of COLL 4.5.3 before 06/10/2006
ICVC requirements
COLL 4.5.4
See Notes
- 01/04/2004
Contents of a short report
COLL 4.5.5
See Notes
- 27/04/2012
- Past version of COLL 4.5.5 before 27/04/2012
Significant information to be contained in the short report
COLL 4.5.6
See Notes
- 22/03/2012
- Past version of COLL 4.5.6 before 22/03/2012
Contents of the annual long report
COLL 4.5.7
See Notes
[Note: article 63(2) of the UCITS Directive]
- 27/04/2012
- Past version of COLL 4.5.7 before 27/04/2012
Contents of the half-yearly long report
COLL 4.5.8
See Notes
- 27/04/2012
- Past version of COLL 4.5.8 before 27/04/2012
Annual and half-yearly long reports for sub-funds of an umbrella
COLL 4.5.8A
See Notes
- 06/04/2006
Signing of annual and half-yearly reports
COLL 4.5.8B
See Notes
- 06/03/2010
Authorised fund manager's report
COLL 4.5.9
See Notes
- 21/12/2011
- Past version of COLL 4.5.9 before 21/12/2011
Comparative table
COLL 4.5.10
See Notes
- 01/04/2004
Report of the depositary
COLL 4.5.11
See Notes
Report of the auditor
COLL 4.5.12
See Notes
Provision of short report
COLL 4.5.13
See Notes
Publication and availability of annual and half-yearly long report
COLL 4.5.14
See Notes
Provision of annual and half-yearly long reports for master and feeder UCITS
COLL 4.5.15
See Notes
- 01/07/2011
Provision of annual and half-yearly long reports for qualifying master schemes of feeder NURS
COLL 4.5.16
See Notes
- 27/04/2012
COLL 4.6
Simplified Prospectus provisions
- 01/11/2007
Application
COLL 4.6.1
See Notes
- 01/11/2007
Production and publication of simplified prospectus
COLL 4.6.2
See Notes
- 01/11/2007
Revision of simplified prospectus
COLL 4.6.3
See Notes
- 01/11/2007
COLL 4.6.4
See Notes
- 01/11/2007
Filing requirements
COLL 4.6.5
See Notes
- 01/11/2007
UK firms exercising passporting rights in respect of UCITS scheme
COLL 4.6.6
See Notes
- 01/11/2007
COLL 4.6.7
See Notes
- 01/10/2012
- Past version of COLL 4.6.7 before 01/10/2012
Contents of the simplified prospectus
COLL 4.6.8
See Notes
Contents of simplified prospectus
Note: | By reproducing schedule C (Contents of the simplified prospectus) to the UCITS Directive (as amplified by Commission Recommendation (2004/384/EC)) and cross-referring to other relevant material, this annex details the facts or matters that must included in a simplified prospectus. | |||
Brief presentation of the simplified prospectus scheme (in this Table referred to as "the scheme"). | ||||
(1) | when the scheme was created and an indication of the EEA State where the scheme has been registered or incorporated; | |||
(2) | in the case of a scheme having different investment compartments (sub-funds), the indication of this circumstance; | |||
(3) | the name and contact details of the operator (when applicable); | |||
(4) | the expected period of existence of the scheme (when applicable); | |||
(5) | the name and contact details of the depositary; | |||
(6) | the name and contact details of the auditors; | |||
(7) | the name and brief details of the financial group (e.g. a bank) promoting the scheme; | |||
Investment information | ||||
(8) | a short description of the scheme's objectives including: | |||
(a) | a concise and appropriate description of the outcomes sought for any investment in the scheme; | |||
(b) | a clear statement of any guarantees offered by third parties to protect investors and any restrictions on those guarantees; | |||
(c) | a statement, where relevant, that the scheme is intended to track an index or indices, and sufficient information to enable investors both to identify the relevant index or indices and to understand the extent or degree of tracking pursued; and | |||
(d) | where the scheme is a qualifying money market fund, short-term money market fund or money market fund, a statement identifying it as such a fund and a statement that the scheme's investment objectives and policies will meet the conditions in the definition of qualifying money market fund, short-term money market fund or money market fund, as appropriate; | |||
Notes: | 1. | Information on (8)(a) should include a statement as to whether there is any arrangement intended to result in a particular capital or income return from the units or any investment objective of giving protection to their capital value or income return and, if so, details of that arrangement or protection. | ||
2. | The information disclosed under (8)(b) should include an explanation of what is to happen when an investment is encashed before the expiry of any related guarantee or protection. | |||
(9) | the scheme's investment policy, including: | |||
(a) | the main categories of eligible financial instruments which are the object of investment; | |||
(b) | whether the scheme has a particular strategy in relation to any industrial, geographic or other market sectors or specific classes of assets, e.g. investments in emerging countries' financial instruments; | |||
(c) | where relevant, a warning that, whilst the actual portfolio composition is required to comply with the broad legal and statutory rules and limits, risk-concentration may occur in regard of certain tighter asset classes, economic and geographic sectors; | |||
(d) | if the scheme invests in bonds, an indication of whether they are corporate or government, their duration and the ratings requirements; | |||
(e) | if the scheme uses financial derivative instruments, an indication of whether this is done in pursuit of the scheme's objectives, or for hedging purposes only; | |||
(f) | whether the scheme's management style makes some reference to a benchmark; and in particular whether the scheme has an 'index tracking' objective, with an indication of the strategy to be pursued to achieve this; and | |||
(g) | whether the scheme's management style is based on a tactical asset allocation with high frequency portfolio adjustments; | |||
provided the information is material and relevant; | ||||
Note: | The information referred to in paragraphs (8) and (9) may be set out as a single item in the simplified prospectus (e.g. for the information on index tracking), provided that the information so combined does not lead to confusion of the objectives and policies of the scheme. The order of the information items may be adapted to reflect the scheme's specific investment objectives and policy. | |||
(10) | a brief assessment of the scheme's risk profile by investment compartment or sub-fund, including: | |||
(a) | overall structure of the information provided: | |||
(i) | a statement to the effect that the value of investments may fall as well as rise and that investors may get back less than they put in; | |||
(ii) | a statement that details of all the risks actually mentioned in the simplified prospectus may be found in the full prospectus; | |||
(iii) | a description in words of any risk investors have to face in relation to their investment, but only where such risk is relevant and material, based on risk impact and probability; and | |||
(b) | details regarding the description (in words) of the following risks: | |||
(i) | specific risks: | |||
The description referred to in paragraph (10)(a)(iii) should include a brief and understandable explanation of any specific risk arising from particular investment policies or strategies or associated with specific markets or assets relevant to the scheme such as: | ||||
A | the risk that the entire market of an asset class will decline thus affecting the prices and values of the assets (market risk); | |||
B | the risk that an issuer or a counterparty will default (credit risk); | |||
C | only where strictly relevant, the risk that a settlement in a transfer system does not take place as expected because a counterparty does not pay or deliver on time or as expected (settlement risk); | |||
D | the risk that a position cannot be liquidated in a timely manner at a reasonable price (liquidity risk); | |||
E | the risk that the investment's value will be affected by changes in exchange rates (exchange or currency risk); | |||
F | only where strictly relevant, the risk of loss of assets held in custody that could result from the insolvency, negligence or fraudulent action of the custodian or of a subcustodian (custody risk); and | |||
G | risks related to a concentration of assets or markets; and | |||
(ii) | horizontal risk factors: | |||
The description referred to in paragraph (10)(a)(iii) should also mention, where relevant and material, the following factors that may affect the product: | ||||
A | performance risk, including the variability of risk levels depending on individual fund selections, and the existence, absence of, or restrictions on any guarantees given by third parties; | |||
B | risks to capital, including potential risk of erosion resulting from withdrawals/cancellations of units and distributions in excess of investment returns; | |||
C | exposure to the performance of the provider/third-party guarantor, where investment in the product involves direct investment in the provider, rather than assets held by the provider; | |||
D | inflexibility, both within the product (including early surrender risk) and constraints on switching to other providers; | |||
E | inflation risk; and | |||
F | lack of certainty that environmental factors, such as a tax regime, will persist; | |||
(iii) | possible prioritisation of information disclosure: | |||
In order to avoid conveying a misleading image of the relevant risks, the information items should be presented so as to prioritise, based on scale and materiality, the risks so as to better highlight the individual risk profile of the scheme; | ||||
(11) | the historical performance of the scheme (where applicable) and a warning that this is not an indicator of future performance (which may be either included in or attached to the simplified prospectus), including: | |||
(a) | disclosure of past performance: | |||
(i) | the scheme's past performance, as presented using a bar chart showing annual returns for the last ten full consecutive years. If the scheme has been in existence for fewer than ten years but at least for a period of one year, it is recommended that the annual returns, calculated net of tax and charges, be given for as many years as are available; and | |||
(ii) | if a scheme is managed according to a benchmark or if its cost structure includes a performance fee depending on a benchmark, the information on the past performance of the scheme should include a comparison with the past performance of the benchmark according to which the scheme is managed or the performance fee is calculated; | |||
Note: | Comparison should be achieved by representing the past performance of the benchmark and that of the scheme through the use of appropriate graphs to assist the reader to make the comparison. | |||
(b) | disclosure of cumulative performance: | |||
Disclosure should be made of the cumulative performance of the scheme over the ten year period referred to in paragraph (11)(a)(i). A comparison should also be made with the cumulative performance (where relevant) of a benchmark, when comparison to a benchmark is required in accordance with paragraph (11)(a)(ii); | ||||
Note: | Where the scheme has been in existence for fewer than ten years but at least for a period of one year, disclosure of the past cumulative performance should be made for as many years as are available. | |||
(c) | exclusion of subscription and redemption fees, subject to appropriate disclosure: | |||
A statement should be made that past performance of the scheme does not include the effect of subscription and redemption fees. | ||||
Notes: | 1. | Where a comparison is being made with the cumulative performance of a benchmark as required by paragraph (11)(b), the comparison should be achieved by representing the past performance of the benchmark and that of the scheme through the use of appropriate graphs to assist the reader to make the comparison. | ||
2. | The scheme's historical performance may be produced as a separate attachment to the simplified prospectus. | |||
(12) | a profile of the typical investor the scheme is designed for; | |||
Economic information | ||||
(13) | the scheme's applicable tax regime, including: | |||
(a) | the tax regime applicable to the scheme in the UK; and | |||
(b) | a statement which explains that the regime of taxation of the income or capital gains received by individual investors depends on the tax law applicable to the personal situation of each individual investor and/or to the place where the capital is invested and that if investors are unclear as to their fiscal position, they should seek professional advice or information from local organisations, where available; | |||
Note: | This information should include a statement in relation to SDRT provision, explaining how the scheme may suffer stamp duty reserve tax as a result of transactions in units and whether the operator's policy is such that an SDRT provision may be imposed. | |||
(14) | details of any entry and exit commissions relating to the scheme and details of the scheme's other possible expenses or fees, distinguishing between those to be paid by the unitholder and those to be paid from the scheme's or the sub-fund's assets, including: | |||
(a) | overall contents of the information provided: | |||
(i) | disclosure of a total expense ratio (TER), calculated as indicated in Annex 1 to this chapter, except for a newly created fund where a TER cannot yet be calculated; | |||
(ii) | on an ex ante basis, disclosure of the expected cost structure, that is an indication of all costs available according to the list set forth in Annex 1 to this chapter so as to provide investors, in so far as possible, with a reasonable estimate of expected costs; | |||
(iii) | all entry and exit commissions and other expenses directly paid by the investor; | |||
(iv) | an indication of all the other costs not included in the TER, including disclosure of transaction costs; | |||
(v) | as an additional indicator of the importance of transaction costs, the portfolio turnover rate, calculated as shown in Annex 2 to this chapter; and | |||
(vi) | an indication of the existence of fee-sharing agreements and soft commissions; | |||
Note: | 1. | In explaining the function of the TER to the reader, appropriate wording should be used in the simplified prospectus. For example, TER might be explained in the following terms: "The TER shows the annual operating expenses of the scheme - it does not include transaction expenses. All European funds highlight the TER to help you compare the annual operating expenses of different schemes." | ||
2. | It is the FSA's understanding that the disclosure of a reasonable estimate of expected costs on an ex ante basis, as required by paragraph (14)(a)(ii), only applies to new schemes where a TER cannot yet be calculated. Where a TER can be calculated for a simplified prospectus scheme, there is no need to have to disclose a reasonable estimate of expected costs on an ex ante basis in accordance with paragraph (14)(a)(ii), in addition to the TER. | |||
3. | Paragraph (14)(a)(vi)) should not be interpreted as a general validation of the compliance of any individual agreement or commission with the provisions of the Handbook . Taking into account current market practice, consideration should be given as to how far the scheme's existing fee-sharing agreements and comparable fee arrangements are for the exclusive benefit of the scheme. | |||
4. | The simplified prospectus should make a reference to the full prospectus for detailed information on these kinds of arrangements, which should allow any investor to understand to whom expenses are to be paid and how possible conflicts of interest will be resolved in his/her best interest. The information provided in the simplified prospectus should remain concise in this respect. | |||
5. | Details of entry and exit commissions relating to the scheme and details of the scheme's other possible expenses or fees, must be presented in the simplified prospectus in the form required by COBS 4.6.9 R (Charges and reduction in yield). | |||
(b) | information about 'fee sharing agreements' and 'soft commissions': | |||
(i) | identification of 'fee-sharing agreements'; | |||
Note: | For the purposes of paragraph (14)(b)(i), fee-sharing agreements should be taken as those agreements whereby a party remunerated, either directly or indirectly, out of the assets of a scheme agrees to split its remuneration with another party and which result in that other party meeting expenses through this fee-sharing agreement that should normally be met, either directly or indirectly, out of the assets of the scheme. | |||
(ii) | identification of soft commissions; | |||
Note: | For the purposes of paragraph (14) (b) (ii), soft commissions should be regarded as any economic benefit, other than clearing and execution services, that an asset manager receives in connection with the scheme's payment of commissions on transactions that involve the scheme's portfolio securities. Soft commissions are typically obtained from, or through, the executing broker. | |||
(c) | presentation of TER and portfolio turnover rate; | |||
Note: | Both the TER and the portfolio turnover rate may be either included in or attached to the simplified prospectus in the same paper as information on past performance. | |||
Commercial information | ||||
(15) | how to buy the units; | |||
Note: | This should include an explanation of any relevant right to cancel or withdraw from the purchase, or, where it is the case, that such rights do not apply. | |||
(16) | how to sell the units; | |||
(17) | in the case of a scheme having different investment compartments (sub-funds), an explanation of how to switch from one investment compartment into another and any charges applicable in such cases; | |||
(18) | when and how dividends on units or shares of the scheme (if applicable) are distributed; | |||
(19) | when and where prices of units are published or made available; | |||
Additional information | ||||
(20) | A statement that, on request, the full prospectus and the annual and half-yearly reports of the scheme may be obtained free of charge before the conclusion of the contract and afterwards, together with details of how they may be obtained or how a person may gain access to them; | |||
(21) | the name and contact details of the FSA as being the competent authority which has authorised or registered the scheme; | |||
(22) | details of a contact point (person or department, and, if appropriate the times of day etc.) where additional information may be obtained if needed; | |||
(23) | the date of publication of the simplified prospectus; | |||
Additional information for a feeder NURS: Objectives and investment policy | ||||
(24) | (a) | where the scheme is a feeder NURS, in the description of objectives and investment policy, information about the proportion of the feeder NURS' assets which is invested in the qualifying master scheme; and | ||
(b) | a description of the qualifying master scheme's objectives and investment policy, supplemented by: | |||
(i) | an indication that the investment returns of the feeder NURS will be very similar to those of the qualifying master scheme; or | |||
(ii) | an explanation of how and why the investment returns of the feeder NURS and qualifying master scheme may differ; | |||
Additional information for a feeder NURS: Risk profile | ||||
(25) | (a) | a description and explanation of any material differences between the risk profile of the feeder NURS and that of the qualifying master scheme; and | ||
(b) | details of: | |||
(i) | any liquidity risk; and | |||
(ii) | the relationship between purchase and redemption arrangements for the qualifying master scheme and feeder NURS; | |||
Additional information for a feeder NURS: Practical information | ||||
(26) | where the scheme is a feeder NURS, information specific to the feeder NURS, including: | |||
(a) | a statement that the following documents of the qualifying master scheme are available to unitholders of the feeder NURS upon request, and details of how they may be obtained: | |||
(i) | the prospectus; | |||
(ii) | A | the key investor information document; or | ||
B | where the authorised fund manager of the qualifying master scheme has a dispensation in the form of a general waiver by consent so that it may provide a key investor information document as modified by the general waiver direction, that document (a 'NURS KII document'); or | |||
C | the key features document; or | |||
D | the simplified prospectus; or | |||
E | the nearest equivalent document for a qualifying master scheme that is a recognised scheme; | |||
(iii) | the annual and half-yearly long reports (or nearest equivalent documents for a qualifying master scheme that is a recognised scheme); and | |||
(iv) | where the qualifying master scheme is a UCITS scheme or non-UCITS retail scheme, its annual and half-yearly short reports; | |||
(b) | where the qualifying master scheme is not established in the United Kingdom, and where this may affect the feeder NURS' tax treatment, a statement to this effect; | |||
Feeder NURS: past performance presentations | ||||
(27) | (a) | any past performance presentation in the document of the feeder NURS must be specific to the feeder NURS and must not reproduce the performance record of the qualifying master scheme; | ||
(b) | the requirement in (a) does not apply where the feeder NURS: | |||
(i) | shows the past performance of its qualifying master scheme as a benchmark; or | |||
(ii) | was launched as a feeder NURS at a later date than the qualifying master scheme and where a simulated performance which is based on the past performance of the qualifying master scheme is shown for the years before the feeder NURS existed; or | |||
(iii) | has a performance record from before the date on which it began to operate as a feeder, its own record being retained in the bar chart of the relevant years, with any material change labelled. | |||
General Note: | ||||
In making the disclosures required by paragraphs (8) to (19) of this Table, the information must be presented in the form of questions and answers. This format is designed to assist the comprehension of the reader. This requirement will not apply in relation to a simplified prospectus that is to be used to market the units of the scheme in another EEA state or in relation to a simplified prospectus that is to be used to market the units of the scheme exclusively to persons who are not retail clients . |
- 27/04/2012
- Past version of COLL 4.6.8 before 27/04/2012
Charges and reduction in yield
COLL 4.6.9
See Notes
- 06/11/2008
- Past version of COLL 4.6.9 before 06/11/2008
Composite documents for several schemes, sub-funds and classes
COLL 4.6.10
See Notes
- 01/11/2007
Multiclass schemes: use of representative class
COLL 4.6.11
See Notes
- 01/11/2007
COLL 4.6.12
See Notes
- 01/11/2007
Use of the "keyfacts" logo within a simplified prospectus
COLL 4.6.13
See Notes
"The Financial Services Authority is the independent financial services regulator. It requires us, [provider name], to give you this important information to help you to decide whether our [product name] is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference".
- 01/11/2007
COLL 4.7
Key investor information and marketing communications
- 01/07/2011
Application
COLL 4.7.1
See Notes
- 01/07/2011
Key investor information
COLL 4.7.2
See Notes
- 01/07/2011
Form and content of a key investor information document
COLL 4.7.3
See Notes
- 01/07/2011
Translation of a key investor information document
COLL 4.7.4
See Notes
- 01/07/2011
Pre-contractual information
COLL 4.7.5
See Notes
- 01/07/2011
COLL 4.7.6
See Notes
- 01/07/2011
Revision and filing of key investor information
COLL 4.7.7
See Notes
- 01/07/2011
Synthetic risk and reward indicators and ongoing charges disclosures in the KII
COLL 4.7.8
See Notes
Methodology for the calculation of the synthetic risk and reward indicator in the KII (CESR/10-673)
www.esma.europa.eu/index.php?page=document_details&id=6961&from_id=28
Methodology for the calculation of the ongoing charges figure in the KII (CESR/10-674)
www.esma.europa.eu/index.php?page=document_details&id=6962&from_id=28
- 01/07/2011
COLL 4.7.9
See Notes
Guidelines - Selection and presentation of performance scenarios in the Key Investor Information document (KII) for structured UCITS (CESR/10-1318)
www.esma.europa.eu/index.php?page=document_details&id=7333&from_id=28
Guidelines - Transition from the Simplified Prospectus to the Key Investor Information document (CESR/10-1319)
www.esma.europa.eu/index.php?page=document_details&id=7334&from_id=28
CESR's guide to clear language and layout for the Key Investor Information document (CESR/10-1320)
www.esma.europa.eu/index.php?page=document_details&id=7335&from_id=28
CESR's template for the Key Investor Information document (CESR/10-1321)
www.esma.europa.eu/index.php?page=document_details&id=7336&from_id=28
CESR's guidelines on a common definition of European money market funds, which refer to matters that should be included in the key investor information for money market funds and short-term money market funds (CESR/10-049)
www.esma.europa.eu/index.php?page=document_details&id=6638&from_id=28
- 01/07/2011
Marketing communications
COLL 4.7.10
See Notes
- 01/07/2011
COLL 4.8
Notifications for UCITS master-feeder arrangements
- 01/07/2011
Application
COLL 4.8.1
See Notes
- 01/07/2011
Purpose
COLL 4.8.2
See Notes
- 01/07/2011
Information to be provided to unitholders
COLL 4.8.3
See Notes
- 01/07/2011
Method of providing information
COLL 4.8.4
See Notes
- 01/07/2011
COLL 4 Annex 1
Total expense ratio calculation
- 01/11/2007
See Notes
Total expense ratio (TER) | |||
1. | Definition of the TER | ||
The total expense ratio (TER) of a simplified prospectus scheme is the ratio of the scheme's total operating costs to its average net assets calculated according to paragraph 3. | |||
2. | Included/excluded costs | ||
(a) | The total operating costs are all the expenses which come in deduction of a simplified prospectus scheme's assets. These costs are usually shown in a scheme's statement of operation for the relevant fiscal period. They are assessed on an 'all taxes included' basis, which means that the gross value of expenses should be used. | ||
(b) | Total operating costs include any legitimate expenses of the simplified prospectus scheme, whatever their basis of calculation (e.g. flat-fee, asset-based, transaction-based - see note 2 above), such as: | ||
- | management costs including performance fees; | ||
- | administration costs; | ||
- | fees linked to depositary duties; | ||
- | audit fees; | ||
- | payments to shareholder services providers including payments to the simplified prospectus scheme's transfer agent and payments to broker-dealers that are record owners of the scheme's shares and that provide sub-accounting services for the beneficial owners of the scheme's shares; | ||
- | payments to lawyers; | ||
- | any distribution or unit cancellation costs charged to the scheme; | ||
- | registration fees, regulatory fees and similar charges; | ||
- | any additional remuneration of the management company (or any other party) corresponding to certain fee-sharing agreements in accordance with paragraph 4 below. | ||
(c) | The total operating costs do not include: | ||
- | transaction costs which are costs incurred by a simplified prospectus scheme in connection with transactions on its portfolio. They include brokerage fees, taxes and linked charges and the market impact of the transaction taking into account the remuneration of the broker and the liquidity of the concerned assets; | ||
- | interest on borrowing; | ||
- | payments incurred because of financial derivative instruments; | ||
- | entry/exit commissions or any other fees paid directly by the investor; | ||
- | soft commissions in accordance with paragraph 4. | ||
3. | Calculation method and disclosure | ||
(a) | The TER is calculated at least once a year on an ex post basis, generally with reference to the fiscal year of the simplified prospectus scheme. For specific purposes it may also be calculated for other time periods. The simplified prospectus should in any case include a clear reference to an information source (e.g. the scheme's website) where the investor may obtain previous years'/periods' TER figures. | ||
(b) | The average net assets must be calculated using figures that are based on the scheme's net assets at each calculation of the net asset value (NAV), e.g. daily NAVs where this is the normal frequency of NAV calculation as approved by the simplified prospectus scheme'scompetent authorities. Further circumstances or events which could lead to misleading figures have equally to be taken into consideration. | ||
Tax relief should not be taken into account. | |||
The calculation method of the TER must be validated by the simplified prospectus scheme's auditors and/or competent authorities. | |||
4. | Fee-sharing agreements and soft commissions | ||
It regularly results from fee-sharing agreements on expenses that are generally not included in the TER, that the management company or another party is actually meeting, in all or in part, operating costs that should normally be included in the TER. They should therefore be taken into account when calculating the TER, by adding to the total operating costs any remuneration of the management company (or another party) that derives from such fee-sharing agreements. | |||
There is no need to take into account fee-sharing arrangements on expenses that are already in the scope of the TER. Soft commissions should also be left outside the scope of the TER. | |||
Thus: | |||
- | the remuneration of a management company through a fee-sharing agreement with a broker on transaction costs and with other fund management companies in the case of funds of funds (if this remuneration has not already been taken into account in the synthetic TER (see paragraph 6 below) or through other costs already charged to the fund and therefore directly included into the TER) should anyway be taken into account in the TER, | ||
- | conversely, the remuneration of a management company through a fee-sharing agreement with a scheme (except when this remuneration falls under the scope of the specific fund-of-fund case covered in the previous indent) should not be taken into account. | ||
5. | Performance fees: | ||
Performance fees should be included in the TER and should also be disclosed separately as a percentage of the average net asset value. | |||
6. | Simplified prospectus scheme investing in UCITS scheme or in non-UCITS scheme: | ||
When a simplified prospectus scheme invests at least 10% of its net asset value in UCITS schemes or in schemes that are not UCITS schemes which publish a TER in accordance with this Annex, a synthetic TER corresponding to that investment should be disclosed. | |||
The synthetic TER is equal to the ratio of: | |||
- | the simplified prospectus scheme's total operating costs expressed by its TER and all the costs borne by the scheme through holdings in underlying funds (i.e. those expressed by the TER of the underlying funds weighted on the basis of the simplified prospectus scheme's investment proportion), plus the subscription and redemption fees of these underlying funds, divided by | ||
- | the average net assets of the scheme. | ||
As mentioned in the previous subparagraph, subscription fees and redemption fees of the underlying funds should be included in the TER. Subscription and redemption fees may not be charged when the underlying funds belong to the same group in accordance with Article 24 (3) of the UCITS Directive. | |||
When any of the underlying schemes that are not UCITS schemes does not publish a TER in accordance with this Annex, disclosure of costs should be adapted in the following way: | |||
- | the impossibility of calculating the synthetic TER for that fraction of the investment must be disclosed, | ||
- | the maximum proportion of management fees charged to the underlying fund(s) must be disclosed in the simplified prospectus, | ||
- | a synthetic figure of total expected costs must be disclosed, by calculating: | ||
- | a truncated synthetic TER incorporating the TER of each of those underlying funds for which the TER is calculated according to this Annex, weighted on the basis of the simplified prospectus scheme's investment proportion, and | ||
- | by adding, for each of the other underlying funds, the subscription and redemption fees plus the best available maximum estimate of TER-eligible costs. This should include the maximum management fee and the last available performance fee for that fund, weighted on the basis of the simplified prospectus scheme's investment proportion. | ||
7. | Umbrella funds/multiclass funds: | ||
In the case of umbrella funds, the TER should be calculated for each sub-fund. If, in the case of multiclass funds, the TER differs between different share classes, a separate TER should be calculated and disclosed for each share class. Furthermore, in keeping with the principle of equality among investors, where there are differences in fees and expenses across classes, these different fees/expenses should be disclosed separately in the simplified prospectus. An additional statement should indicate that the objective criteria (e.g. the amount of subscription), on which these differences are based, are available in the full prospectus. |
Notes: | |
1. | This Annex sets out the requirements in relation to the TER. It reproduces, and adapts where appropriate for the purposes of the Simplified Prospectus provisions, Annex 1 to Commission Recommendation (2004/384/EC), amplifying Schedule C (Contents of the simplified prospectus) to the Management Company Directive (2004/107/EC). |
2. | The non-exhaustive typology of calculation bases referred to in paragraph 2(b) below reflects the diversity of recent commercial practice across Member States (at the end of 2003) and should not be interpreted as a general validation of the compliance of any individual agreement or commission with the provisions of the Handbook. |
- 01/11/2007
COLL 4 Annex 2
Portfolio turnover calculation
- 01/11/2007
See Notes
This Annex belongs to the rule on the contents of the simplified prospectus in this chapter. | |
Note: | This Annex sets out the requirements in relation to the portfolio turnover rate. It reproduces Annex II to Commission Recommendation (2004/384/EC), amplifying Schedule C (Contents of the simplified prospectus) to the Management Company Directive (2004/107/EC). This table also includes other material which the FSA considers should be included. |
Portfolio turnover rate | |
A simplified prospectus scheme's or, where relevant, a compartment's (sub-fund's) portfolio turnover rate must be calculated in the following way: | |
Purchases of securities = X | |
Sales of securities = Y | |
Total 1 = total of transactions in securities = X + Y | |
Issues/Subscriptions of units of the scheme = S | |
Cancellations/Redemptions of units of the scheme = T | |
Total 2 = Total transactions in units of the scheme = S + T | |
Reference average of total net assets = M | |
Turnover = [(Total 1 - Total 2)/M]*100 | |
The reference average of total net assets corresponds to the average of net asset values calculated with the same frequency as under Annex 1 to this chapter. The portfolio turnover rate disclosed should correspond to the period(s) for which a TER is disclosed. The simplified prospectus should in any case include a clear reference to an information source (e.g. the scheme's website) where the investor may obtain previous periods' performance. | |
Note | |
Firms should note that inclusion of the portfolio turnover rate in the simplified prospectus is mandatory. The rate must be calculated according to the formula which is prescribed above. However, because the rate includes both purchases and sales of securities, readers may find it difficult to understand. Consequently firms should consider including an explanation of the formula, such as: |
- 01/11/2007
COLL 5
Investment and borrowing powers
COLL 5.1
Introduction
- 01/12/2004
Application
COLL 5.1.1
See Notes
- 01/07/2011
- Past version of COLL 5.1.1 before 01/07/2011
Purpose
COLL 5.1.2
See Notes
- 01/04/2004
Treatment of obligations
COLL 5.1.3
See Notes
- 01/04/2004
Indicative overview of investment and borrowing powers
COLL 5.1.4
See Notes
Scheme investments and investment techniques | Limits for UCITS schemes | Limits for non-UCITS retail schemes | ||
Permissible investment | Maximum limit | Permissible investment | Maximum limit | |
Approved securities | Yes | None | Yes | None |
Transferable securities that are not approved securities | Yes | 10% | Yes | 20% |
Government and public securities | Yes | None | Yes | None |
Regulated schemes other than qualified investor schemes | Yes | None | Yes | None |
Unregulated schemes and qualified investor schemes | No | N/A | Yes | 20%(C) |
Warrants | Yes | None | Yes | None |
Investment trusts | Yes | None | Yes | None |
Deposits | Yes | None | Yes | None |
Derivatives | Yes | None | Yes | None |
Immovables (i.e real property) | No | N/A | Yes | None |
Gold | No | N/A | Yes | 10% |
Hedging | Yes | None | Yes | None |
Stock lending | Yes | None | Yes | None |
Underwriting | Yes | None | Yes | None |
Borrowing | Yes | 10% (T) | Yes | 10% |
Cash and near cash | Yes | None | Yes | None |
Note: | Meaning of terms used: | |||
A percentage | an upper limit (though there may be limits of other kinds). | |||
"(T)" | temporary only- see COLL 5.5.4R(4) | |||
"N/A" | Not applicable | |||
"(C)" | In the case of a non-UCITS retail scheme operating as a FAIF there is no maximum limit - see COLL 5.7.7 R. |
- 06/03/2010
- Past version of COLL 5.1.4 before 06/03/2010
COLL 5.2
General investment powers and limits for UCITS schemes
- 01/12/2004
Application
COLL 5.2.1
See Notes
- 01/07/2011
- Past version of COLL 5.2.1 before 01/07/2011
Table of application
COLL 5.2.2
See Notes
Rule | ICVC | ACD | Manager of an AUT | Depositary of an ICVC | Trustee of an AUT |
5.2.3R to 5.2.9R | x | x | |||
5.2.9AR | x | x | |||
5.2.10R(1) | x | x | |||
5.2.10R(2)(a)&(b) | x | x | |||
5.2.10R(2)(c) | x | x | |||
5.2.10R(3) | x | x | |||
5.2.10AR to 5.2.10EG | x | x | |||
5.2.11R to 5.2.21R | x | x | |||
5.2.22R | x | x | |||
5.2.22AG | x | x | x | x | x |
5.2.23R(1) | x | x | x | ||
5.2.23R(2) to (4) | x | x | x | x | x |
5.2.23CR | x | x | |||
5.2.26R | x | x | |||
5.2.27R | x | ||||
5.2.28R | x | ||||
5.2.29R to 5.2.33R | x | x | x | ||
5.2.34G | x | x | |||
Note: x means "applies" |
- 01/07/2011
- Past version of COLL 5.2.2 before 01/07/2011
COLL 5.2.2A
See Notes
- 23/07/2008
Prudent spread of risk
COLL 5.2.3
See Notes
- 01/04/2004
Investment powers: general
COLL 5.2.4
See Notes
- 01/04/2004
Valuation
COLL 5.2.5
See Notes
- 06/10/2006
- Past version of COLL 5.2.5 before 06/10/2006
Valuation guidance
COLL 5.2.6
See Notes
- 01/04/2004
UCITS schemes: permitted types of scheme property
COLL 5.2.6A
See Notes
Transferable securities
COLL 5.2.7
See Notes
- 26/02/2010
- Past version of COLL 5.2.7 before 26/02/2010
Investment in transferable securities
COLL 5.2.7A
See Notes
- 23/07/2008
COLL 5.2.7B
See Notes
- 23/07/2008
Closed end funds constituting transferable securities
COLL 5.2.7C
See Notes
- 23/07/2008
COLL 5.2.7D
See Notes
- 23/07/2008
Transferable securities linked to other assets
COLL 5.2.7E
See Notes
- 23/07/2008
Approved money-market instruments
COLL 5.2.7F
See Notes
COLL 5.2.7G
See Notes
- 23/07/2008
COLL 5.2.7H
See Notes
- 23/07/2008
Guidance on assessing liquidity and quality of money-market instruments
COLL 5.2.7I
See Notes
Transferable securities and money-market instruments generally to be admitted to or dealt in on an eligible market
COLL 5.2.8
See Notes
- 01/07/2011
- Past version of COLL 5.2.8 before 01/07/2011
Eligible markets regime: purpose
COLL 5.2.9
See Notes
- 01/07/2011
- Past version of COLL 5.2.9 before 01/07/2011
COLL 5.2.9A
See Notes
- 01/07/2011
Eligible markets: requirements
COLL 5.2.10
See Notes
- 01/04/2004
Money-market instruments with a regulated issuer
COLL 5.2.10A
See Notes
Issuers and guarantors of money-market instruments
COLL 5.2.10B
See Notes
Appropriate information for money-market instruments
COLL 5.2.10C
See Notes
- 23/07/2008
COLL 5.2.10D
See Notes
- 23/07/2008
Other money-market instruments with a regulated issuer
COLL 5.2.10E
See Notes
Spread: general
COLL 5.2.11
See Notes
Guidance on spread: general
COLL 5.2.11A
See Notes
Counterparty risk and issuer concentration
COLL 5.2.11B
See Notes
- 01/07/2011
Spread: government and public securities
COLL 5.2.12
See Notes
Investment in collective investment schemes
COLL 5.2.13
See Notes
Qualifying non-UCITS collective investment schemes
COLL 5.2.14
See Notes
Investment in associated collective investment schemes
COLL 5.2.15
See Notes
Investment in other group schemes
COLL 5.2.16
See Notes
Investment in nil and partly paid securities
COLL 5.2.17
See Notes
Derivatives: general
COLL 5.2.19
See Notes
Guidance on transferable securities and money-market instruments embedding derivatives
COLL 5.2.19A
See Notes
- 23/07/2008
Permitted transactions (derivatives and forwards)
COLL 5.2.20
See Notes
[Note: article 8(5) of the UCITS eligible assets Directive]
Financial indices underlying derivatives
COLL 5.2.20A
See Notes
- 23/07/2008
Guidance on financial indices underlying derivatives
COLL 5.2.20B
See Notes
Transactions for the purchase of property
COLL 5.2.21
See Notes
- 01/04/2004
Requirement to cover sales
COLL 5.2.22
See Notes
Guidance on requirement to cover sales
COLL 5.2.22A
See Notes
OTC transactions in derivatives
COLL 5.2.23
See Notes
COLL 5.2.23A
See Notes
- 06/01/2010
COLL 5.2.23B
See Notes
- 06/01/2010
Valuation of OTC derivatives
COLL 5.2.23C
See Notes
- 01/07/2011
COLL 5.2.24
See Notes
COLL 5.2.25
See Notes
Investment in deposits
COLL 5.2.26
See Notes
- 01/04/2004
Significant influence for ICVCs
COLL 5.2.27
See Notes
- 01/04/2004
Significant influence for managers of AUTs
COLL 5.2.28
See Notes
- 01/04/2004
Concentration
COLL 5.2.29
See Notes
UCITS schemes that are umbrellas
COLL 5.2.30
See Notes
Schemes replicating an index
COLL 5.2.31
See Notes
[Note: article 12(1) of the UCITS eligible assets Directive]
Index replication
COLL 5.2.32
See Notes
[Note:CESR's UCITS eligible assets guidelines with respect to Article 12(2) of the UCITS eligible assets Directive]
Relevant indices
COLL 5.2.33
See Notes
Disclosure requirements in relation to UCITS schemes or EEA UCITS schemes that employ particular investment strategies
COLL 5.2.34
See Notes
- 01/07/2011
Guidance on syndicated loans
COLL 5.2.35
See Notes
- 22/03/2012
COLL 5.3
Derivative exposure
- 01/12/2004
Application
COLL 5.3.1
See Notes
- 01/04/2004
Introduction
COLL 5.3.2
See Notes
- 01/07/2011
- Past version of COLL 5.3.2 before 01/07/2011
COLL 5.3.3
See Notes
- 01/07/2011
- Past version of COLL 5.3.3 before 01/07/2011
Cover for investment in derivatives and forward transactions
COLL 5.3.3A
See Notes
- 01/07/2011
Daily calculation of global exposure
COLL 5.3.3B
See Notes
- 01/07/2011
COLL 5.3.3C
See Notes
- 01/07/2011
Guidance on cover
COLL 5.3.4
See Notes
- 01/07/2011
- Past version of COLL 5.3.4 before 01/07/2011
Borrowing
COLL 5.3.5
See Notes
- 22/03/2012
- Past version of COLL 5.3.5 before 22/03/2012
COLL 5.3.6
See Notes
- 01/07/2011
- Past version of COLL 5.3.6 before 01/07/2011
Calculation of global exposure
COLL 5.3.7
See Notes
- 01/07/2011
COLL 5.3.8
See Notes
- 01/07/2011
Commitment approach
COLL 5.3.9
See Notes
- 01/07/2011
COLL 5.3.10
See Notes
- 01/07/2011
CESR guidelines
COLL 5.3.11
See Notes
Guidelines: Risk Measurement and the Calculation of Global Exposure and Counterparty Risk for UCITS (CESR/10-788)
www.esma.europa.eu/index.php?page=document_details&id=7000&from_id=28
Guidelines to competent authorities and UCITS management companies on risk measurement and the calculation of global exposure for certain types of structured UCITS (ESMA/2011/112)
www.esma.europa.eu/index.php?page=document_details&id=7542&from_id=28
- 01/07/2011
COLL 5.4
Stock lending
- 01/12/2004
Application
COLL 5.4.1
See Notes
- 06/03/2007
- Past version of COLL 5.4.1 before 06/03/2007
Permitted stock lending
COLL 5.4.2
See Notes
- 23/07/2008
- Past version of COLL 5.4.2 before 23/07/2008
Stock lending: general
COLL 5.4.3
See Notes
- 06/03/2007
- Past version of COLL 5.4.3 before 06/03/2007
Stock lending: requirements
COLL 5.4.4
See Notes
- 06/03/2007
- Past version of COLL 5.4.4 before 06/03/2007
Stock lending: treatment of collateral
COLL 5.4.5
See Notes
- 01/04/2004
Treatment of collateral
COLL 5.4.6
See Notes
- 06/03/2007
- Past version of COLL 5.4.6 before 06/03/2007
Limitation by value
COLL 5.4.7
See Notes
- 06/03/2007
- Past version of COLL 5.4.7 before 06/03/2007
Guidance relating to the use of cash collateral
COLL 5.4.8
See Notes
- 06/10/2007
COLL 5.4.9
See Notes
- 23/07/2008
COLL 5.5
Cash, borrowing, lending and other provisions
- 01/12/2004
Application
COLL 5.5.1
See Notes
- 01/04/2004
Table of application
COLL 5.5.2
See Notes
Rule | ICVC | ACD | Manager of an AUT | Depositary of an ICVC | Trustee of an AUT |
5.5.3R | x | x | |||
5.5.4R(1) to (3) | x | x | |||
5.5.4R(4)&(5) | x | x | |||
5.5.4R(6) | x | x | |||
5.5.4R(7) | x | x | x | x | x |
5.5.4R(8) | x | ||||
5.5.5R(1) to (3) | x | x | |||
5.5.6R(1)&(2) | x | x | x | ||
5.5.6R(3) | x | ||||
5.5.7R(1)-(3) | x | x | x | ||
5.5.7R(4) | x | x | x | ||
5.5.8R | x | x | x | ||
5.5.9R | x | x | x | ||
5.5.10G | x | x | x | x | x |
Note: x means "applies" |
- 06/04/2006
- Past version of COLL 5.5.2 before 06/04/2006
Cash and near cash
COLL 5.5.3
See Notes
- 01/04/2004
General power to borrow
COLL 5.5.4
See Notes
- 01/04/2004
Borrowing limits
COLL 5.5.5
See Notes
- 06/04/2006
- Past version of COLL 5.5.5 before 06/04/2006
Restrictions on lending of money
COLL 5.5.6
See Notes
- 01/04/2004
Restrictions on lending of property other than money
COLL 5.5.7
See Notes
- 06/01/2010
- Past version of COLL 5.5.7 before 06/01/2010
COLL 5.5.7A
See Notes
- 06/01/2010
General power to accept or underwrite placings
COLL 5.5.8
See Notes
- 01/07/2011
- Past version of COLL 5.5.8 before 01/07/2011
Guarantees and indemnities
COLL 5.5.9
See Notes
- 01/04/2004
Guidance on restricting payments
COLL 5.5.10
See Notes
- 01/04/2004
COLL 5.6
Investment powers and borrowing limits for non - UCITS retail schemes
- 01/12/2004
Application
COLL 5.6.1
See Notes
- 01/04/2004
Explanation of COLL 5.6
COLL 5.6.2
See Notes
- 01/04/2004
Prudent spread of risk
COLL 5.6.3
See Notes
provided that (1) is complied with during such period.
- 27/04/2012
- Past version of COLL 5.6.3 before 27/04/2012
Investment powers: general
COLL 5.6.4
See Notes
- 14/12/2007
- Past version of COLL 5.6.4 before 14/12/2007
Eligibility of transferable securities and money-market instruments for investment by a non-UCITS retail scheme
COLL 5.6.5
See Notes
- 06/01/2010
- Past version of COLL 5.6.5 before 06/01/2010
COLL 5.6.5A
See Notes
- 06/01/2010
COLL 5.6.5B
See Notes
- 06/01/2010
COLL 5.6.5C
See Notes
- 01/07/2011
Money Market funds
COLL 5.6.5D
See Notes
- 01/07/2011
Valuation
COLL 5.6.6
See Notes
- 01/04/2004
Spread: general
COLL 5.6.7
See Notes
- 27/04/2012
- Past version of COLL 5.6.7 before 27/04/2012
Guidance on spread: general
COLL 5.6.7A
See Notes
Spread: government and public securities
COLL 5.6.8
See Notes
- 06/08/2006
- Past version of COLL 5.6.8 before 06/08/2006
Investment in nil and partly paid securities
COLL 5.6.9
See Notes
- 23/07/2008
- Past version of COLL 5.6.9 before 23/07/2008
Investment in collective investment schemes
COLL 5.6.10
See Notes
Investment in associated collective investment schemes
COLL 5.6.11
See Notes
Derivatives: general
COLL 5.6.12
See Notes
Permitted transactions (derivatives and forwards)
COLL 5.6.13
See Notes
Transactions for the purchase or disposal of property
COLL 5.6.14
See Notes
- 01/04/2004
OTC transactions in derivatives
COLL 5.6.15
See Notes
- 01/04/2004
Risk management
COLL 5.6.16
See Notes
Risk management process
COLL 5.6.17
See Notes
Investment in property
COLL 5.6.18
See Notes
Investment in overseas property through an intermediate holding vehicle
COLL 5.6.18A
See Notes
COLL 5.6.18B
See Notes
- 14/12/2007
Investment limits for immovables
COLL 5.6.19
See Notes
Standing independent valuer and valuation
COLL 5.6.20
See Notes
COLL 5.6.20A
See Notes
- 06/10/2008
Stock lending
COLL 5.6.21
See Notes
- 01/04/2004
Cash, borrowing, lending and other provisions
COLL 5.6.22
See Notes
Schemes replicating an index
COLL 5.6.23
See Notes
- 01/04/2004
COLL 5.6.23A
See Notes
- 23/07/2008
Non-UCITS retail schemes that are umbrellas
COLL 5.6.24
See Notes
Guidance on syndicated loans
COLL 5.6.25
See Notes
- 22/03/2012
Qualifying collective investment schemes for feeder NURS
COLL 5.6.26
See Notes
- 27/04/2012
COLL 5.7
Investment powers and borrowing limits for NURS operating as FAIFs
- 06/03/2010
Application
COLL 5.7.1
See Notes
- 06/03/2010
Purpose
COLL 5.7.2
See Notes
- 27/04/2012
- Past version of COLL 5.7.2 before 27/04/2012
Applicable rules in COLL 5.6
COLL 5.7.3
See Notes
- 06/03/2010
Investment powers: general
COLL 5.7.4
See Notes
- 06/03/2010
Spread: general
COLL 5.7.5
See Notes
- 06/03/2010
Guidance on spread: general
COLL 5.7.6
See Notes
- 06/03/2010
Investment in collective investment schemes
COLL 5.7.7
See Notes
- 06/03/2010
COLL 5.7.8
See Notes
- 06/03/2010
Due diligence requirements
COLL 5.7.9
See Notes
- 06/03/2010
COLL 5.7.10
See Notes
- 06/03/2010
COLL 5.7.11
See Notes
- 06/03/2010
Non-UCITS retail schemes that are umbrellas with FAIF sub-funds
COLL 5.7.12
See Notes
- 27/04/2012
COLL 5.8
Investment powers and borrowing limits for feeder UCITS
- 01/07/2011
Application
COLL 5.8.1
See Notes
- 01/07/2011
Permitted types of scheme property
COLL 5.8.2
See Notes
- 01/07/2011
Balance of scheme property: investment restrictions on a feeder UCITS
COLL 5.8.3
See Notes
- 01/07/2011
Exposure to derivatives
COLL 5.8.4
See Notes
- 01/07/2011
Prudent spread of risk
COLL 5.8.5
See Notes
- 01/07/2011
Investment powers: general
COLL 5.8.6
See Notes
- 01/07/2011
Other provisions applicable to a feeder UCITS
COLL 5.8.7
See Notes
- 01/07/2011
COLL 5.9
Investment powers and other provisions for money market funds
- 01/07/2011
Application
COLL 5.9.1
See Notes
- 01/07/2011
Explanation
COLL 5.9.2
See Notes
- 01/07/2011
Investment conditions: short-term money market funds
COLL 5.9.3
See Notes
- 01/07/2011
COLL 5.9.4
See Notes
- 01/07/2011
Investment conditions: money market funds
COLL 5.9.5
See Notes
- 01/07/2011
High quality money market instruments
COLL 5.9.6
See Notes
- 01/07/2011
Calculating weighted average life and weighted average maturity
COLL 5.9.7
See Notes
- 01/07/2011
CESR guidelines
COLL 5.9.8
See Notes
- 01/07/2011
COLL 6
Operating duties and responsibilities
COLL 6.1
Introduction and Application
- 01/12/2004
Application
COLL 6.1.1
See Notes
- 01/04/2004
Purpose
COLL 6.1.2
See Notes
- 01/04/2004
Explanation of this chapter
COLL 6.1.3
See Notes
- 06/10/2006
- Past version of COLL 6.1.3 before 06/10/2006
COLL 6.2
Dealing
- 01/12/2004
Application
COLL 6.2.1
See Notes
- 01/04/2004
Purpose
COLL 6.2.2
See Notes
- 01/04/2004
Initial offers
COLL 6.2.3
See Notes
- 06/10/2006
- Past version of COLL 6.2.3 before 06/10/2006
Initial offer: guidance
COLL 6.2.4
See Notes
- 01/04/2004
Issue and cancellation of units by an ICVC
COLL 6.2.5
See Notes
- 01/04/2004
Issue and cancellation of units in an AUT
COLL 6.2.6
See Notes
- 01/04/2004
Issue and cancellation of units in multiple classes
COLL 6.2.6A
See Notes
- 06/03/2007
Issue and cancellation of units through an authorised fund manager
COLL 6.2.7
See Notes
(a) the instrument constituting the scheme must provide for this; and
(b) the prospectus must provide details of the procedure to be followed which must be consistent with the rules in this section.
- 01/04/2004
Controls over the issue and cancellation of units
COLL 6.2.8
See Notes
- 06/10/2006
- Past version of COLL 6.2.8 before 06/10/2006
Controls over the issue and cancellation of units - guidance
COLL 6.2.9
See Notes
- 06/10/2006
- Past version of COLL 6.2.9 before 06/10/2006
Modification to number of units issued or cancelled
COLL 6.2.10
See Notes
- 01/04/2004
Compensation for box management errors
COLL 6.2.11
See Notes
- 01/04/2004
Box management errors guidance
COLL 6.2.12
See Notes
Correction of box management errors | ||
1 | Controls by authorised fund managers | |
An authorised fund manager needs to be able to demonstrate that it has effective controls over: | ||
(1) | its calculations of what units are owned by it (its 'box'); and | |
(2) | compliance with COLL 6.2.8 R which is intended to prevent a negative box. | |
2 | Controls by depositaries | |
(1) | Under COLL 6.6.4 (General duties of the depositary), a depositary should take reasonable care to ensure that a scheme is managed in accordance with COLL 6.2 (Dealing) and COLL 6.3 (Pricing and valuation). | |
(2) | A depositary should therefore make a regular assessment of the authorised fund manager's box management procedures (including supporting systems) and controls. This should include reviewing the authorised fund manager's controls and procedures when the depositary assumes office, on any significant change and on a regular basis, to ensure that a series of otherwise minor changes do not have a cumulative and a significant effect on the accuracy of the controls and procedures. | |
3 | Recording and reporting of box management errors | |
(1) | An authorised fund manager should record all errors which result in a breach of COLL 6.2.8 R (Controls over the issue and cancellation of units) and as soon as an error is discovered, the authorised fund manager should report the fact to the depositary, together with details of the action taken, or to be taken, to avoid repetition of the error. | |
(2) | A depositary should report material box management errors to the FSA immediately. Materiality should be determined by taking into account a number of factors including:
(a) the implications of the error for the sufficiency of controls put into place by the authorised fund manager; (b) the significance of any breakdown in the authorised fund manager's management controls or other checking procedures; (c) the significance of any failure of systems or back-up arrangements; (d) the duration of an error; and (e) the level of compensation due to the scheme, and an authorised fund manager's ability (or otherwise) to meet claims for compensation in full.
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(3) | A depositary should also make a return to the FSA (in the manner prescribed by SUP 16.6.8 R) on a quarterly basis. |
Payment for units issued
COLL 6.2.13
See Notes
Payment for cancelled units
COLL 6.2.14
See Notes
In specie issue and cancellation
COLL 6.2.15
See Notes
Sale and redemption
COLL 6.2.16
See Notes
Sale and redemption: guidance
COLL 6.2.17
See Notes
Limited issue
COLL 6.2.18
See Notes
Limited redemption
COLL 6.2.19
See Notes
Limited redemption: guidance
COLL 6.2.20
See Notes
Deferred redemption
COLL 6.2.21
See Notes
Deferred redemption: guidance
COLL 6.2.22
See Notes
- 01/04/2004
Property Authorised Investment Funds
COLL 6.2.23
See Notes
- 06/06/2008
COLL 6.2.24
See Notes
- 06/06/2008
COLL 6.3
Valuation and pricing
- 01/12/2004
Application
COLL 6.3.1
See Notes
in addition to applying in accordance with (1); but
- 01/07/2011
- Past version of COLL 6.3.1 before 01/07/2011
Purpose
COLL 6.3.2
See Notes
- 06/10/2006
- Past version of COLL 6.3.2 before 06/10/2006
Valuation
COLL 6.3.3
See Notes
- 06/10/2006
- Past version of COLL 6.3.3 before 06/10/2006
Accounting procedures
COLL 6.3.3A
See Notes
- 01/07/2011
COLL 6.3.3B
See Notes
- 01/07/2011
COLL 6.3.3C
See Notes
- (1) The accounting policies and procedures referred to in COLL 6.3.3B R should enable the authorised fund manager of a UCITS scheme to value the scheme property accurately at each valuation point and to calculate dealing prices by reference to that valuation.
- (2) Where different share or unit classes exist, it should be possible to extract from the accounting records the net asset value of each different class.
[Note: recital (9) of the UCITS implementing Directive]
- 01/07/2011
COLL 6.3.3D
See Notes
- 01/07/2011
Valuation points
COLL 6.3.4
See Notes
- 01/07/2011
- Past version of COLL 6.3.4 before 01/07/2011
Price of a unit
COLL 6.3.5
See Notes
- 06/10/2006
- Past version of COLL 6.3.5 before 06/10/2006
Sale and redemption prices for single-priced authorised funds
COLL 6.3.5A
See Notes
- 06/10/2006
Sale and redemption price parameters for dual-priced authorised funds
COLL 6.3.5B
See Notes
- 06/10/2006
COLL 6.3.5C
See Notes
- 06/10/2006
Valuation and pricing guidance
COLL 6.3.6
See Notes
Valuation and pricing | ||
1 | The valuation of scheme property | |
(1) | Where possible, investments should be valued using a reputable source. The reliability of the source of prices should be kept under regular review. | |
(2) | For some or all of the investments comprising the scheme property, different prices may quoted according to whether they are being bought (offer prices) or sold (bid prices). The valuation of a single-priced authorised fund should reflect the mid-market value of such investments. In the case of a dual-priced authorised fund, the issue basis of the valuation will be carried out by reference to the offer prices of investments and the cancellation basis by reference to the bid prices of those same investments. The prospectus should explain how investments will be valued for which a single price is quoted for both buying and selling. | |
(2A) | Schemes investing in approved money-market instruments should value such instruments on an amortised cost basis on condition that:
(a) the approved money-market instrument has a residual maturity of less than three months and has no specific sensitivity to market parameters, including credit risk; or (b) the scheme is a qualifying money market fund.
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[Note: CESR's UCITS eligible assets guidelines with respect to article 4(2) of the UCITS eligible assets Directive] | ||
(2B) | Short-term money market funds may value approved money-market instruments on an amortised cost basis. | |
[Note: paragraph 21 of CESR's guidelines on a common definition of European money market funds] | ||
(3) | Any part of the scheme property of an authorised fund that is not an investment should be valued at a fair value, but for immovables this is subject to COLL 5.6.20 R (3) (f) (Standing independent valuer and valuation). | |
(4) | For the purposes of (2) and (3), any fiscal charges, commissions, professional fees or other charges that were paid, or would be payable on acquiring or disposing of the investment or other part of the scheme property should, in the case of a single-priced authorised fund, be excluded from the value of an investment or other part of the scheme property. In the case of a dual-priced authorised fund, any such payments should be added to the issue basis of the valuation, or subtracted from the cancellation basis of the valuation, as appropriate. Alternatively, the prospectus of a dual-priced authorised fund may prescribe any other method of calculating unit prices that ensures an equivalent treatment of the effect of these payments. | |
(5) | Where the authorised fund manager has reasonable grounds to believe that:
(a) no reliable price exists for a security at a valuation point; or (b) the most recent price available does not reflect the authorised fund manager's best estimate of the value of a security at the valuation point
it should value an investment at a price which, in its opinion, reflects a fair and reasonable price for that investment (the fair value price); |
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(6) | The circumstances which may give rise to a fair value price being used include:
(a) no recent trade in the security concerned; or (b) the occurrence of a significant event since the most recent closure of the market where the price of the security is taken.
In (b), a significant event is one that means the most recent price of a security or a basket of securities is materially different to the price that it is reasonably believed would exist at the valuation point had the relevant market been open. |
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(7) | In determining whether to use such a fair value price, the authorised fund manager should include in his consideration:
(a) the type of authorised fund concerned; (b) the securities involved; (c) the basis and reliability of the alternative price used; and (d) the authorised fund manager's policy on the valuation of scheme property as disclosed in the prospectus.
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(7A) | Where the authorised fund manager, the depositary or the standing independent valuer have reasonable grounds to believe that the most recent valuation of an immovable does not reflect the current value of that immovable, the authorised fund manager should consult and agree with the standing independent valuer a fair and reasonable value for the immovable. | |
(8) | The authorised fund manager should document the basis of valuation (including any fair value pricing policy) and, where appropriate, the basis of any methodology and ensure that the procedures are applied consistently and fairly. | |
(9) | Where a unit price is determined using properly applied fair value prices in accordance with policies in (8), subsequent information that indicates the price should have been different from that calculated will not normally give rise to an instance of incorrect pricing. | |
2 | The pricing controls of the authorised fund manager | |
(1) | An authorised fund manager needs to be able to demonstrate that it has effective controls over its calculations of unit prices. | |
(2) | The controls referred to in (1) should ensure that:
(a) asset prices are accurate and up to date; (b) investment transactions are accurately and promptly reflected in valuations; (c) the components of the valuation (including stock, cash, and units in issue), are regularly reconciled to their source or prime records and any reconciling items resolved promptly and debtors reviewed for recoverability;(d) the sources of prices not obtained from the main pricing source are recorded and regularly reviewed; (e) compliance with the investment and borrowing powers is regularly reviewed; (f) dividends are accounted for as soon as securities are quoted ex-dividend (unless it is prudent to account for them on receipt): (g) fixed interest dividends, interest and expenses are accrued at each valuation point;(h) tax positions are regularly reviewed and adjusted, if necessary; (i) reasonable tolerances are set for movements in the key elements of a valuation and movements outside these tolerances are investigated; (j) the fund manager regularly reviews the portfolio valuation for accuracy; and (k) the valuation of OTC derivatives is accurate and up to date and in compliance with the methods agreed with the depositary.
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(3) | In exercising its pricing controls, the authorised fund manager may exercise reasonable discretion in determining the appropriate frequency of the operation of the controls and may choose a longer interval, if appropriate, given the level of activity on the authorised fund or the materiality of any effect on the price. | |
(4) | Evidence of the exercise of the pricing controls should be retained. | |
(5) | Evidence of persistent or repetitive errors in relation to these matters, and in particular any evidence of a pattern of errors working in an authorised fund manager's favour, will make demonstrating effective controls more difficult. | |
(6) | Where the pricing function is delegated to a third party, COLL 6.6.15 R (1) (Committees and delegation) will apply. | |
3 | The depositary's review of the authorised fund manager's systems and controls | |
(1) | This section provides details of the types of checks a depositary should carry out to be satisfied that the authorised fund manager adopts systems and controls which are appropriate to ensure that prices of units are calculated in accordance with this section and to ensure that the likelihood of incorrect prices will be minimised. These checks also apply where an authorised fund manager has delegated all or some of its pricing functions to one or more third parties. | |
(2) | A depositary should thoroughly review an authorised fund manager's systems and controls to confirm that they are satisfactory. The depositary's review should include an analysis of the controls in place to determine the extent to which reliance can be placed on them. | |
(3) | A review should be performed when the depositary is appointed and thereafter as it feels appropriate given its knowledge of the robustness and the stability of the systems and controls and their operation. | |
(4) | A review should be carried out more frequently where a depositary knows or suspects that an authorised fund manager's systems and controls are weak or are otherwise unsatisfactory. | |
(5) | Additionally, a depositary should from time to time review other aspects of the valuation of the scheme property of each authorised fund for which it is responsible, verifying, on a sample basis, if necessary, the assets, liabilities, accruals, units in issue , securities prices (and in particular the prices of OTC derivatives, unapproved securities and the basis for the valuation of unquoted securities) and any other relevant matters, for example an accumulation factor or a currency conversion factor. | |
(6) | A depositary should ensure that any issues, which are identified in any such review, are properly followed up and resolved. | |
4 | The recording and reporting of instances of incorrect pricing | |
(1) | An authorised fund manager should record each instance where the price of a unit is incorrect as soon as the error is discovered, and report the fact to the depositary together with details of the action taken, or to be taken, to avoid repetition as soon as practicable. | |
(2) | In accordance with COLL 6.6.11 G (Duty to inform the FSA), the depositary should report any breach of the rules in COLL 6.3 immediately to the FSA. However, notification should relate to instances which the depositary considers material only. | |
(3) | A depositary should also report to the FSA immediately any instance of incorrect pricing where the error is 0.5% or more of the price of a unit, where a depositary believes that reimbursement or payment is inappropriate and should not be paid by an authorised fund manager. | |
(4) | In accordance with SUP 16.6.8 R, a depositary should also make a return to the FSA on a quarterly basis which summarises the number of instances of incorrect pricing during a particular period. | |
5 | The rectification of pricing breaches | |
(1) | COLL 6.6.3 R (1) (Functions of the authorised fund manager) places a duty on the authorised fund manager to take action to reimburse affected unitholders, former unitholders, and the scheme itself, for instances of incorrect pricing , except if it appears to the depositary that the breach is of minimal significance. | |
(2) | A depositary may consider that the instance of incorrect pricing is of minimal significance if:
(a) the authorised fund manager and depositary meet the standards of control set out in Section 2 and Section 3 of this Table; and (b) the error in pricing of a unit is less than 0.5% of the correct price.
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(3) | In determining (2), if the instance of incorrect pricing is due to one or more factors or exists over a period of time, each price should be considered separately. | |
(4) | If a depositary deems it appropriate, it may, in spite of the circumstances outlined in (2), require a payment from the authorised fund manager or from the authorised fund to the unitholders, former unitholders, the authorised fund or the authorised fund manager (where appropriate). | |
(5) | The depositary should satisfy itself that any payments required following an instance of incorrect pricing are accurately and promptly calculated and paid. | |
(6) | If a depositary considers that reimbursement or payment is inappropriate, it should report the matter to the FSA , together with its recommendation and justification. The depositary should take into account the need to avoid prejudice to the rights of unitholders, or the rights of unitholders in a class of units. | |
(7) | It may not be practicable, or in some cases legally permissible, for the authorised fund manager to obtain reimbursement from unitholders, where the unitholders have benefited from the incorrect price. | |
(8) | In all cases where reimbursement or payment is required, amounts due to be reimbursed to unitholders for individual sums which are reasonably considered by the authorised fund manager and depositary to be immaterial, need not normally be paid. |
- 01/07/2011
- Past version of COLL 6.3.6 before 01/07/2011
SDRT Provision
COLL 6.3.7
See Notes
- 01/04/2004
Dilution
COLL 6.3.8
See Notes
- 01/04/2004
Forward and historic pricing
COLL 6.3.9
See Notes
- 06/10/2006
- Past version of COLL 6.3.9 before 06/10/2006
Historic pricing: guidance
COLL 6.3.10
See Notes
- 01/04/2004
Publication of prices
COLL 6.3.11
See Notes
Manner of price publication
COLL 6.3.12
See Notes
Maintaining the value of a qualifying money market fund or a short-term money market fund
COLL 6.3.13
See Notes
COLL 6.3.14
See Notes
COLL 6.4
Title and registers
- 01/12/2004
Application
COLL 6.4.1
See Notes
- 01/04/2004
Purpose
COLL 6.4.2
See Notes
- 01/04/2004
Explanation of this section
COLL 6.4.3
See Notes
- (1) This section deals with matters relating to the register of unitholders of units in an AUT including its establishment and contents. The manager or trustee may be responsible for the register. In any event, the person responsible for the register must be stated in the trust deed and this section details what his duties are. The provisions relating to documents evidencing title to units, including the issue of bearer certificates are dependent on the provisions in the trust deed and their operation should be set out in the prospectus.
- (2) For an ICVC, requirements as to the register of holders and transfer of units are contained in Schedule 3 of the OEIC Regulations (Register of shareholders).
- (3) COLL 6.4.9 makes provision to ensure that if the cost of the plan register is borne by the scheme, plan investors have the same rights in respect of notice and disclosure as unitholders on the main register.
- 01/04/2004
Register: general requirements and contents
COLL 6.4.4
See Notes
- 01/04/2004
The manager as unitholder
COLL 6.4.5
See Notes
- 01/04/2004
Transfer of units by act of parties
COLL 6.4.6
See Notes
- 01/04/2004
Certificates (including bearer certificates)
COLL 6.4.7
See Notes
- 01/04/2004
Conversion of units
COLL 6.4.8
See Notes
- 01/04/2004
Plan registers
COLL 6.4.9
See Notes
- 01/04/2004
COLL 6.5
Appointment and replacement of the authorised fund manager and the depositary
- 01/12/2004
Application
COLL 6.5.1
See Notes
- 01/04/2004
COLL 6.5.2
See Notes
This table belongs to COLL 6.5.1 R.
Rule | ICVC | ACD | Any other director of an ICVC | Depositary of an ICVC | Manager of an AUT | Trustee of an AUT |
6.5.1R | x | x | x | x | x | x |
6.5.3R | x | x | x | x | ||
6.5.4R | x | x | x | |||
6.5.5R | x | x | ||||
6.5.6R | x | x | ||||
6.5.7R | x | x | ||||
6.5.8R | x | x | ||||
6.5.9R | x | x | ||||
6.5.10R | x | x | x | x | ||
Note: "x" means "applies", but not every paragraph in every rule will necessarily apply. |
- 01/04/2004
Appointment of an ACD
COLL 6.5.3
See Notes
- 06/04/2006
- Past version of COLL 6.5.3 before 06/04/2006
Termination of appointment of an ACD
COLL 6.5.4
See Notes
- 01/04/2004
Other directors
COLL 6.5.5
See Notes
- 01/04/2004
ICVC without a director
COLL 6.5.6
See Notes
- 01/04/2004
Replacement of a manager
COLL 6.5.7
See Notes
- 06/05/2007
- Past version of COLL 6.5.7 before 06/05/2007
Retirement of a manager of an AUT
COLL 6.5.8
See Notes
- 01/04/2004
Consequences of removal or retirement of a manager of an AUT
COLL 6.5.9
See Notes
- 01/04/2004
Retirement of the depositary
COLL 6.5.10
See Notes
- (1) The depositary of an authorised fund may not retire voluntarily except upon the appointment of a new depositary.
- (2) The depositary of an authorised fund must not retire voluntarily unless, before its retirement, it has ensured that the new depositary has been informed of any circumstance of which the retiring depositary has informed the FSA.
- (3) When the depositary of an authorised fund wishes to retire or ceases to be an authorised person, the authorised fund manager may, subject to section 251 of the Act (Alteration of schemes and changes of manager or trustee) or regulation 21 of the OEIC Regulations (The Authority's approval for certain changes in respect of a company) appoint another person eligible to be the depositary in its place.
- 01/04/2004
COLL 6.6
Powers and duties of the scheme, the authorised fund manager, and the depositary
- 01/12/2004
Application
COLL 6.6.1
See Notes
- 01/04/2004
Table of application
COLL 6.6.2
See Notes
Rule | ICVC | ACD | Any other directors of an ICVC | Depositary of an ICVC | Manager of an AUT | Trustee of an AUT |
6.6.1R | x | x | x | x | x | x |
6.6.3R | x | x | x | x | x | |
6.6.4R | x | x | ||||
6.6.5R | x | x | x | x | x | |
6.6.5AR | x | |||||
6.6.5BG | x | |||||
6.6.6R | x | x | ||||
6.6.7R | x | x | ||||
6.6.8R | x | x | ||||
6.6.9R | x | x | ||||
6.6.10R | x | x | x | x | ||
6.6.11G | x | x | ||||
6.6.12R | x | x | ||||
6.6.13R | x | x | x | x | x | |
6.6.14R | x | x | x | x | ||
6.6.15R | x | x | x | x | x | |
6.6.15AR* | x | x | ||||
6.6.16G | x | x | x | x | ||
6.6.17R | x | x | x | x | x | |
6.6.18G | x | x | x | x | x | |
Notes: | (1) | "x" means "applies", but not every paragraph in every rule will necessarily apply. | ||||
(2) | * COLL 6.6.15A R has a special application as set out in COLL 6.6.15AR (1). |
- 21/12/2011
- Past version of COLL 6.6.2 before 21/12/2011
Functions of the authorised fund manager
COLL 6.6.3
See Notes
- (1) The authorised fund manager must manage the scheme in accordance with:
- (a) the instrument constituting the scheme;
- (b) the rules in this sourcebook;
- (c) the most recently published prospectus; and
- (d) for an ICVC, the OEIC Regulations.
- (2) The authorised fund manager must take such steps as necessary to ensure compliance with the rules in this sourcebook that impose obligations upon the ICVC.
- (3) The authorised fund manager must:
- (a) make decisions as to the constituents of the scheme property in accordance with the investment objectives and policy of the scheme;
- (b) instruct the depositary in writing how rights attaching to the ownership of the scheme property are to be exercised, but not where COLL 6.6.13 R (2) (Exercise of rights in respect of the scheme property) applies; and
- (c) take action immediately to rectify any breach of COLL 6.3 and, where the breach relates to the incorrect pricing of units or to the late payment in respect of the issue of units, the rectification must, (unless the depositary otherwise directs under (4)), extend to the reimbursement or payment, or arranging the reimbursement or payment, of money:
- (i) by the authorised fund manager to unitholders and former unitholders;
- (ii) by the ACD to the ICVC;
- (iii) by the ICVC to the ACD;
- (iv) by the manager to the trustee; or
- (v) by the trustee (for the account of the AUT) to the manager.
- (4) Rectification under (3)(c) need not, unless the depositary so directs, extend to any such reimbursement or payment where it appears to the depositary such breach, is of minimal significance.
- 01/04/2004
General duties of the depositary
COLL 6.6.4
See Notes
[Note: articles 22(3)(a), (d) and (e), 23(5), 32(3) and 33(5) of the UCITS Directive and article 36 first sentence of the UCITS implementing Directive]
- 01/07/2011
- Past version of COLL 6.6.4 before 01/07/2011
COLL 6.6.4A
See Notes
- 01/07/2011
Duties of the authorised fund manager and the depositary under the general law
COLL 6.6.5
See Notes
- 01/04/2004
Duties of the ACD of an ICVC: umbrella schemes
COLL 6.6.5A
See Notes
- 21/12/2011
COLL 6.6.5B
See Notes
- 21/12/2011
Maintenance of records
COLL 6.6.6
See Notes
- 01/04/2004
COLL 6.6.6A
See Notes
- 01/07/2011
Maintenance of capital: notification
COLL 6.6.7
See Notes
- 01/04/2004
Auditor: AUTs
COLL 6.6.8
See Notes
- 01/04/2004
Returns: AUTs
COLL 6.6.9
See Notes
- 21/04/2005
- Past version of COLL 6.6.9 before 21/04/2005
Dealings in scheme property
COLL 6.6.10
See Notes
- 01/04/2004
Duty to inform the FSA
COLL 6.6.11
See Notes
Control by the depositary over the scheme property
COLL 6.6.12
See Notes
- 01/04/2004
Exercise of rights in respect of the scheme property
COLL 6.6.13
See Notes
- 01/04/2004
Duties of the depositary and the authorised fund manager: investment and borrowing powers
COLL 6.6.14
See Notes
Committees and delegation
COLL 6.6.15
See Notes
COLL 6.6.15A
See Notes
and in addition if that person is not an EEA firm, co-operation is ensured between the FSA and the overseas regulator of that person;
- 01/07/2011
Delegation: guidance
COLL 6.6.16
See Notes
Conflicts of interest
COLL 6.6.17
See Notes
- 01/04/2004
Conflicts of interest: guidance
COLL 6.6.18
See Notes
COLL 6.6A
Duties of AFMs in relation to UCITS schemes and EEA UCITS schemes
- 01/07/2011
Application
COLL 6.6A.1
See Notes
- 01/07/2011
Duties of AFMs of UCITS schemes and EEA UCITS schemes to act in the best interests of the scheme and its unitholder
COLL 6.6A.2
See Notes
- 01/07/2011
COLL 6.6A.3
See Notes
- 01/07/2011
Due diligence requirements of AFMs of UCITS schemes and EEA UCITS schemes
COLL 6.6A.4
See Notes
- 01/07/2011
Compliance with the regulatory requirements applicable to the conduct of business activities of a UCITS management company
COLL 6.6A.5
See Notes
- 01/07/2011
Strategies for the exercise of voting rights
COLL 6.6A.6
See Notes
- 01/07/2011
COLL 6.7
Payments
- 01/12/2004
Application
COLL 6.7.1
See Notes
- 01/04/2004
Table of application
COLL 6.7.2
See Notes
Rule | ICVC | ACD | Depositary of an ICVC | Manager of an AUT | Trustee of an AUT |
6.7.1R to 6.7.5G | x | x | x | x | x |
6.7.6G | x | x | x | ||
6.7.7R | x | x | |||
6.7.8G | x | x | |||
6.7.9R | x | x | |||
6.7.10R | x | x | x | x | |
6.7.11G | x | x | x | x | |
6.7.12R | x | x | x | ||
6.7.13G | x | x | x | ||
6.7.14R | x | ||||
6.7.15R | x | x | x | x | x |
6.7.16G | x | x | x | x | |
6.7.17R | x | x | x | ||
Note: "x" means "applies", but not every paragraph in every rule will necessarily apply. |
- 01/04/2004
Purpose
COLL 6.7.3
See Notes
- 01/04/2004
Payments out of scheme property
COLL 6.7.4
See Notes
- 14/12/2007
- Past version of COLL 6.7.4 before 14/12/2007
Payments out of scheme property: guidance
COLL 6.7.5
See Notes
- 31/12/2012
- Past version of COLL 6.7.5 before 31/12/2012
Performance fees
COLL 6.7.6
See Notes
- 01/04/2004
Charges on buying and selling units
COLL 6.7.7
See Notes
- 01/07/2011
- Past version of COLL 6.7.7 before 01/07/2011
Charges on buying and selling units: guidance
COLL 6.7.8
See Notes
- 01/04/2004
Charges for the exchange of units in an umbrella
COLL 6.7.9
See Notes
- 01/04/2004
Allocation of payments to income or capital
COLL 6.7.10
See Notes
Allocation of payments to income or capital: guidance
COLL 6.7.11
See Notes
- 01/04/2004
Prohibition on promotional payments
COLL 6.7.12
See Notes
Prohibition on promotional payments: guidance
COLL 6.7.13
See Notes
Movable or immovable property
COLL 6.7.14
See Notes
- 01/04/2004
Payment of liabilities on transfer of assets
COLL 6.7.15
See Notes
- 01/04/2004
Exemptions from liability to account for profits
COLL 6.7.16
See Notes
- 01/04/2004
Allocation of scheme property
COLL 6.7.17
See Notes
- 01/04/2004
COLL 6.8
Income: accounting, allocation and distribution
- 01/12/2004
Application
COLL 6.8.1
See Notes
- 01/04/2004
Accounting periods
COLL 6.8.2
See Notes
- 06/03/2010
- Past version of COLL 6.8.2 before 06/03/2010
COLL 6.8.2A
See Notes
- 06/08/2006
Income allocation and distribution
COLL 6.8.2B
See Notes
- 01/07/2011
COLL 6.8.3
See Notes
Allocation of income to different classes of unit
COLL 6.8.3A
See Notes
- 06/03/2010
Unclaimed, de minimis and joint unitholder distributions
COLL 6.8.4
See Notes
- 01/04/2004
Guidance: contents of the prospectus
COLL 6.8.5
See Notes
- 01/04/2004
COLL 6.9
Independence, names and UCITS business restrictions
- 01/12/2004
Application
COLL 6.9.1
See Notes
- 06/04/2006
- Past version of COLL 6.9.1 before 06/04/2006
Independence of depositaries and scheme operators
COLL 6.9.2
See Notes
- 01/04/2004
Independence: influence by directors
COLL 6.9.3
See Notes
- 01/04/2004
Independence: influence by shareholding
COLL 6.9.4
See Notes
- 01/04/2004
Independence: contractual commitments
COLL 6.9.5
See Notes
- 01/04/2004
Undesirable or misleading names
COLL 6.9.6
See Notes
- 01/12/2009
- Past version of COLL 6.9.6 before 01/12/2009
Undesirable or misleading names: umbrellas
COLL 6.9.7
See Notes
- 01/04/2004
Undesirable or misleading names: umbrellas - guidance
COLL 6.9.8
See Notes
- 01/04/2004
Restrictions on the use of the term 'money market fund'
COLL 6.9.8A
See Notes
- 01/07/2011
Restrictions of business for UCITS management companies
COLL 6.9.9
See Notes
- 06/08/2009
- Past version of COLL 6.9.9 before 06/08/2009
Connected activities: guidance
COLL 6.9.10
See Notes
Notification to the FSA in its role as registrar of ICVCs
COLL 6.9.11
See Notes
- 01/04/2004
COLL 6.10
Senior personnel responsibilities
- 01/07/2011
Application
COLL 6.10.1
See Notes
- 01/07/2011
Senior personnel responsibilities
COLL 6.10.2
See Notes
- 01/07/2011
COLL 6.10.3
See Notes
- 01/07/2011
COLL 6.11
Risk control and internal reporting
- 01/07/2011
Application
COLL 6.11.1
See Notes
- 01/07/2011
Permanent risk management function
COLL 6.11.2
See Notes
- 01/07/2011
COLL 6.11.3
See Notes
- 01/07/2011
Duties of the permanent risk management function
COLL 6.11.4
See Notes
- 01/07/2011
COLL 6.12
Risk management policy and risk measurement
- 01/07/2011
Application
COLL 6.12.1
See Notes
- 01/07/2011
COLL 6.12.2
See Notes
- 01/07/2011
Risk management process
COLL 6.12.3
See Notes
- 01/07/2011
COLL 6.12.4
See Notes
- 01/07/2011
Risk management policy
COLL 6.12.5
See Notes
- 01/07/2011
COLL 6.12.6
See Notes
- 01/07/2011
Monitoring of risk management policy
COLL 6.12.7
See Notes
- 01/07/2011
COLL 6.12.8
See Notes
- 01/07/2011
Measurement and management of risk
COLL 6.12.9
See Notes
- 01/07/2011
COLL 6.12.10
See Notes
- 01/07/2011
COLL 6.12.11
See Notes
- 01/07/2011
COLL 6.12.12
See Notes
- 01/07/2011
CESR guidelines: Risk management principles for UCITS
COLL 6.12.13
See Notes
Guidelines - Risk management principles for UCITS (CESR/09-178)
http://www.esma.europa.eu/index.php?page=document_details&id=5620&from_id=28
- 01/07/2011
COLL 6.13
Record keeping
- 01/07/2011
Application
COLL 6.13.1
See Notes
- 01/07/2011
Recording of portfolio transactions
COLL 6.13.2
See Notes
- 01/07/2011
Recording of subscription and redemption orders
COLL 6.13.3
See Notes
- 01/07/2011
Recordkeeping requirements
COLL 6.13.4
See Notes
- 01/07/2011
Electronic data processing
COLL 6.13.5
See Notes
- 01/07/2011
COLL 6.13.6
See Notes
- 01/07/2011
COLL 6 Annex 1
Particulars of the standard agreement between an EEA UCITS management company and a depositary
- 01/07/2011
See Notes
Contents of the standard agreement | |||
(1) | Provisions related to the procedures to be followed by the parties to the agreement: | ||
(a) | a description of the procedures, included those relating to the safekeeping, to be adopted for each type of asset of the UCITS scheme that is entrusted to the depositary; | ||
(b) | a description of the procedures to be followed where the authorised fund manager envisages a modification of the instrument constituting the scheme or the prospectus of the UCITS scheme, and identifying when the depositary should be informed, or where a prior agreement from the depositary is needed to proceed with the modification; | ||
(c) | a description of the means and procedures by which the depositary will transmit to the authorised fund manager all relevant information that the authorised fund manager needs to perform its duties, including a description of the means and procedures related to the exercise of any rights attached to financial instruments, and the means and procedures applied in order to allow the authorised fund manager and the UCITS scheme to have timely and accurate access to information relating to the accounts of the UCITS scheme; | ||
(d) | a description of the means and procedures by which the depositary will have access to all relevant information it needs to perform its duties; | ||
(e) | a description of the procedures by which the depositary has the ability to enquire into the conduct of the authorised fund manager and to assess the quality of information transmitted, including by way of on-site visits; and | ||
(f) | a description of the procedures by which the authorised fund manager can review the performance of the depositary in respect of the depositary's contractual obligations. | ||
[Note: article 30 of the UCITS implementing Directive] | |||
(2) | Provisions related to the exchange of information and to obligations on confidentiality and money laundering: | ||
(a) | a list of all the information that needs to be exchanged between the UCITS scheme, its authorised fund manager and depositary related to the issue, cancellation, sale and redemption of units of the UCITS scheme; | ||
(b) | the confidentiality obligations applicable to the parties to the agreement. These obligations must be drawn up so as not to impair the ability of either the FSA or the Home State regulator of the EEA UCITS management company to gain access to relevant documents and information; and | ||
(c) | information on the duties and responsibilities of the parties to the agreement in respect of obligations relating to the prevention of money laundering and the financing of terrorism, where applicable. | ||
[Note: article 31 of the UCITS implementing Directive] | |||
(3) | Provisions related to the appointment of third parties: | ||
In cases where the parties to the agreement envisage the appointment of third parties to carry out their duties, the following provisions: | |||
(a) | an undertaking by both parties to provide details, on a regular basis, of any third parties appointed by the depositary or the authorised fund manager to carry out their respective duties; | ||
(b) | an undertaking that on request by one of the parties, the other will provide information on the criteria used for selecting the third party and the steps taken to monitor the activities carried out by the selected third party; and | ||
(c) | a statement that a depositary's liability as referred to at COLL 6.6.15 R (5) (Committees and delegation) will not be affected by the fact that it has entrusted to a third party all or some of the assets in its safekeeping. | ||
[Note: article 32 of the UCITS implementing Directive] | |||
(4) | Provisions related to potential amendments and the termination of the agreement: | ||
(a) | the period of validity of the agreement; | ||
(b) | the conditions under which the agreement may be amended or terminated; and | ||
(c) | conditions which are necessary to facilitate transition to another depositary and, in the event of that transition, the procedure by which the depositary should send all relevant information to the other depositary. | ||
[Note: article 33 of the UCITS implementing Directive] | |||
(5) | Applicable law: | ||
A provision specifying that the law of the United Kingdom applies to the agreement. | |||
[Note: article 34 of the UCITS implementing Directive] | |||
(6) | Electronic transmission of information: | ||
In cases where the parties to the agreement agree to the use of electronic transmission for part or all of the information that is to flow between them, a provision ensuring that a record is kept of that information. | |||
[Note: article 35 of the UCITS implementing Directive] | |||
(7) | Scope of the agreement: | ||
Where the agreement is to cover more than one UCITS scheme managed by the authorised fund manager, a provision listing the UCITS schemes covered by the agreement. | |||
[Note: article 36 last sentence of the UCITS implementing Directive] | |||
(8) | Service level agreement: | ||
The parties to the agreement may include either in the agreement or in a separate written agreement the details of the means and procedures referred to in (1)(c) and (d). | |||
[Note: article 37 of the UCITS implementing Directive] |
- 01/07/2011
COLL 7
Suspension of dealings and termination of authorised funds
COLL 7.1
Introduction
- 01/12/2004
Application
COLL 7.1.1
See Notes
- 01/07/2011
- Past version of COLL 7.1.1 before 01/07/2011
Table of application
COLL 7.1.2
See Notes
Rule | ICVC | ACD | Any other directors of an ICVC | Depositary of an ICVC | Manager | Trustee |
7.1.1 | x | x | x | x | x | x |
7.1.3 | x | x | x | x | x | x |
7.2.1 | x | x | x | x | x | |
7.3.1 | x | x | x | x | ||
7.3.2 | x | x | x | x | ||
7.3.3 | x | x | x | |||
7.3.4 | x | x | x | |||
7.3.5 | x | x | ||||
7.3.6 | x | x | x | |||
7.3.7 | x | x | x | x | ||
7.3.8 | x | x | ||||
7.3.9 | x | |||||
7.3.10 | x | x | x | x | ||
7.3.11 | x | |||||
7.3.12 | x | x | ||||
7.3.13 (1) | x | x | ||||
7.3.13 (2) | x | x | ||||
7.4 | x | x | ||||
7.5 | x | x | x | x | x | |
7.6 | x | x | x | x | x | |
7.7 | x | x | x | x | x | x |
Note: x means "applies" |
- 01/07/2011
- Past version of COLL 7.1.2 before 01/07/2011
Purpose
COLL 7.1.3
See Notes
- 28/08/2007
- Past version of COLL 7.1.3 before 28/08/2007
COLL 7.2
Suspension and restart of dealings
- 01/12/2004
Requirement
COLL 7.2.1
See Notes
- 01/07/2011
- Past version of COLL 7.2.1 before 01/07/2011
Temporary suspension of units of a master UCITS or qualifying master scheme
COLL 7.2.1A
See Notes
Guidance
COLL 7.2.2
See Notes
- (1) Suspension should be allowed only in exceptional cases where circumstances so require and suspension is justified having regard to the interests of the unitholders. Difficulties in realising scheme assets or temporary shortfalls in liquidity may not on their own be sufficient justification for suspension. In such circumstances the authorised fund manager and depositary would need to be confident that suspension could be demonstrated genuinely to be in the best interests of the unitholders. Before an authorised fund manager and depositary determines that it is the best interests of unitholders to suspend dealing, it should ensure that any alternative courses of action have been discounted.
- (2) The authorised fund manager will need to ensure that any suspension, while maintaining unitholders' interests, is temporary, of minimal duration and is consistent with the provisions of the prospectus and the instrument constituting the scheme.
- (3) During a suspension, the authorised fund manager should inform any person who requests a sale or redemption of units that all dealings in units have been suspended and that that person has the option to withdraw the request during the period of suspension or have the request executed at the first opportunity after the suspension ends.
- 06/01/2009
COLL 7.3
Winding up a solvent ICVC and terminating or winding up a sub-fund of an ICVC
- 21/12/2011
- Past version of COLL 7.3 before 21/12/2011
Explanation of COLL 7.3
COLL 7.3.1
See Notes
- 21/12/2011
- Past version of COLL 7.3.1 before 21/12/2011
Special meanings for termination of a sub-fund of an ICVC
COLL 7.3.2
See Notes
- 01/04/2004
Guidance on winding up or termination
COLL 7.3.3
See Notes
Summary of the main steps in winding up a solvent ICVC or terminating a sub-fund under
FSA
rules
, assuming
FSA
approval. Notes: N = Notice to be given to the FSA under regulation 21 of OEIC Regulations E = commencement of winding up or termination W/U = winding up FAP = final accounting period (COLL 7.3.8 R(4)) | |||
Step number | Explanation | When | COLL rule (unless stated otherwise) |
1 | Commence preparation of solvency statement | N-28 days | 7.3.5 (2) |
2 | Send audited solvency statement to the FSA with copy to depositary | By N + 21 days | 7.3.5 (4) and (5) |
3 | Receive the FSA approval | N + one month | Regulation 21 of OEIC Regulations |
4 | Normal business ceases; notify unitholders | E | 7.3.6 |
5 | Realise proceeds, wind up, instruct depositary accordingly | ASAP after E | 7.3.7 |
6 | Prepare final account or termination account & have account audited | On completion of W/U or termination | 7.3.8 |
7 | Send final account or termination account and auditor's report to the FSA & unitholders | Within 4 months of FAP | 7.3.8(6) |
8 | Request FSA to revoke relevant authorisation order or update its records | On completion of W/U or termination | 7.3.7(9) |
- 21/12/2011
- Past version of COLL 7.3.3 before 21/12/2011
When an ICVC is to be wound up or a sub-fund terminated or wound up
COLL 7.3.4
See Notes
- 22/03/2012
- Past version of COLL 7.3.4 before 22/03/2012
Solvency statement
COLL 7.3.5
See Notes
- 21/12/2011
- Past version of COLL 7.3.5 before 21/12/2011
Consequences of commencement of winding up or termination
COLL 7.3.6
See Notes
If the ACD has not previously notified unitholders of the proposal to wind up the ICVC or terminate the sub-fund, the ACD must, as soon as practicable after winding up or termination has commenced, give written notice of the commencement of the winding up or termination to the unitholders.
- 21/12/2011
- Past version of COLL 7.3.6 before 21/12/2011
Manner of winding up or termination
COLL 7.3.7
See Notes
- 21/12/2011
- Past version of COLL 7.3.7 before 21/12/2011
COLL 7.3.7A
See Notes
- 06/03/2011
Final account and termination account
COLL 7.3.8
See Notes
- 06/03/2011
- Past version of COLL 7.3.8 before 06/03/2011
Duty to ascertain liabilities
COLL 7.3.9
See Notes
- 21/12/2011
- Past version of COLL 7.3.9 before 21/12/2011
Reports and accounts
COLL 7.3.10
See Notes
COLL 7.3.10A
See Notes
- 06/03/2011
Liabilities of the ACD
COLL 7.3.11
See Notes
Miscellaneous
COLL 7.3.13
See Notes
COLL 7.4
Winding up an AUT and terminating a sub-fund of an AUT
- 01/12/2004
Explanation of COLL 7.4
COLL 7.4.1
See Notes
- 06/03/2011
- Past version of COLL 7.4.1 before 06/03/2011
Special meanings for termination of a sub-fund of an AUT
COLL 7.4.2
See Notes
- 01/04/2004
Guidance on winding up or termination
COLL 7.4.2A
See Notes
Summary of the main steps in winding up an AUT or terminating a sub-fund under
FSA
rules
Notes: N = Notice to be given to the FSA under section 251 of the Act. E = commencement of winding up or termination W/U = winding up FAP = final accounting period (COLL 7.4.5 R (4)) | |||
Step number | Explanation | When | COLL rule (unless stated otherwise) |
1 | Receive FSA approval | N + one month On receipt of notice from the FSA | Section 251 of the Act |
2 | Normal business ceases; notify unitholders | E | 7.4.3R |
3 | Trustee to realise and distribute proceeds | ASAP after E | 7.4.4R(1) to (5) |
4 | Send annual long report of manager and trustee to the FSA | Within 4 months of FAP | 7.4.5R(5) |
5 | Request FSA to revoke relevant authorisation order | On completion of W/U | 7.4.4R(6) |
- 06/03/2011
When an AUT is to be wound up or a sub-fund terminated
COLL 7.4.3
See Notes
- 06/03/2011
- Past version of COLL 7.4.3 before 06/03/2011
Manner of winding up or termination
COLL 7.4.4
See Notes
- 06/03/2011
- Past version of COLL 7.4.4 before 06/03/2011
COLL 7.4.4A
See Notes
- 06/03/2011
Accounting and reports during winding up or termination
COLL 7.4.5
See Notes
- 06/03/2011
- Past version of COLL 7.4.5 before 06/03/2011
COLL 7.4.6
See Notes
- 06/03/2011
COLL 7.5
Schemes or sub-funds that are not commercially viable
- 01/12/2004
Explanation of this section
COLL 7.5.1
See Notes
- 01/04/2004
Information to be provided to the FSA
COLL 7.5.2
See Notes
- 01/04/2004
COLL 7.6
Schemes of arrangement
- 01/12/2004
Schemes of arrangement: explanation
COLL 7.6.1
See Notes
- 01/07/2011
- Past version of COLL 7.6.1 before 01/07/2011
Schemes of arrangement: requirements
COLL 7.6.2
See Notes
- 01/04/2004
COLL 7.7
UCITS mergers
- 01/07/2011
Application
COLL 7.7.1
See Notes
- 01/07/2011
COLL 7.7.2
See Notes
- 01/07/2011
References to a UCITS scheme
COLL 7.7.3
See Notes
- 01/07/2011
UCITS mergers
COLL 7.7.4
See Notes
- 01/07/2011
Meetings of unitholders
COLL 7.7.5
See Notes
- 01/07/2011
UCITS Regulations 2011
COLL 7.7.6
See Notes
- (1) The requirements and the process which must be followed to give effect to a proposal for a UCITS merger as specified by Chapter VI of the UCITS Directive (see articles 37 to 48) have been implemented in the United Kingdom by the provisions of Part 4 of the UCITS Regulations 2011. The main features of the regime as set out in those provisions include:
- (a) the different types of merger operation that will be recognised for a UCITS merger;
- (b) the need for the FSA to give prior approval to the proposed merger under regulation 9 (Application for authorisation) of the UCITS Regulations 2011, where the arrangements proposed constitute either:
- (i) a domestic UCITS merger; or
- (ii) a cross-border UCITS merger in which the merging UCITS is a UCITS scheme (a UK UCITS);
- (c) the information that has to be given to the FSA in order to obtain the approval under (b);
- (d) the need for draft terms of merger to be prepared;
- (e) the role of the relevant depositaries and auditors;
- (f) the need for appropriate and accurate information to be prepared for the benefit of unitholders;
- (g) rights of redemption and suspension of dealing in units in the relevant UCITS; and
- (h) the consequences of the proposed merger.
- (2) Firms are advised that they do not need to seek approval from the FSA under section 251 (Alteration of schemes and changes of manager or trustee) of the Act or, as the case may be, regulation 21 (The Authority's approval for certain changes in respect of a company) of the OEIC Regulations where they are required to obtain the prior approval of the FSA to a proposed merger under regulation 9 of the UCITS Regulations 2011.
- (3) A summary of how the regime for UCITS mergers operates is to be found in COLLG.
- 01/07/2011
Common draft terms of merger
COLL 7.7.7
See Notes
- 01/07/2011
COLL 7.7.8
See Notes
- 01/07/2011
Verification by the depositary
COLL 7.7.9
See Notes
- 01/07/2011
Information to be given to unitholders
COLL 7.7.10
See Notes
and in either case must do so at least 30 days before the last date by which unitholders may request repurchase or redemption of their units or, where applicable, conversion without additional charge.
- 01/07/2011
General rules regarding the content of merger information to be provided to unitholders
COLL 7.7.11
See Notes
- 01/07/2011
COLL 7.7.12
See Notes
- 01/07/2011
Specific rules regarding the content of merger information to be provided to unitholders of the merging UCITS
COLL 7.7.13
See Notes
- (1) Where the merging UCITS is a UCITS scheme, the information document that its authorised fund manager must provide to its unitholders under COLL 7.7.10 R (3)(b) must also include:
- (a) details of any differences in the rights of unitholders of the merging UCITS before and after the proposed UCITS merger takes effect;
- (b) if the key investor information of the merging UCITS and the receiving UCITS show synthetic risk and reward indicators in different categories, or identify different material risks in the accompanying narrative, a comparison of those differences;
- (c) a comparison of all charges, fees and expenses for both schemes, based on the amounts disclosed in their respective key investor information;
- (d) if the merging UCITS applies a performance-related fee, an explanation of how it will be applied up to the point at which the merger becomes effective;
- (e) if the receiving UCITS applies a performance-related fee, how it will subsequently be applied to ensure fair treatment of those unitholders who previously held units in the merging UCITS;
- (f) in cases where costs associated with the preparation and the completion of the merger may be charged to either the merging or the receiving UCITS or any of their unitholders, details of how those costs are to be allocated; and
- (g) an explanation of whether the authorised fund manager of the merging UCITS itself intends to undertake any rebalancing of the portfolio before the merger takes effect.
- (2) The information to be provided under COLL 7.7.10 R (3)(c) must also include:
- (a) details of how any accrued income in each scheme is to be treated; and
- (b) an indication of how the report of the independent auditor or the depositary may be obtained.
- (3) The information to be provided in accordance with COLL 7.7.10 R (3)(d) must include:
- (a) where required by COLL 7.6.2 R (Schemes of arrangement: requirements), the procedure by which unitholders will be asked to approve the merger proposal, and what arrangements will be made to inform them of the outcome;
- (b) the details of any intended suspension of dealing in units to enable the merger to be carried out efficiently; and
- (c) when the merger will take effect in accordance with regulation 13 of the UCITS Regulations 2011.
- (4) The information to be provided to the unitholders of the merging UCITS must include:
- (a) the period during which those unitholders will be able to continue making subscriptions and requesting redemptions of units in the scheme;
- (b) the time when those unitholders not making use of their rights granted under regulation 12 of the UCITS Regulations 2011, within the relevant time limit, will be able to exercise their rights as unitholders of the receiving UCITS; and
- (c) an explanation that once the merger proposal is approved by the resolution of a general meeting of the unitholders of the merging UCITS, those unitholders who vote against the proposal or who do not vote at all, and who do not make use of their rights granted under regulation 12 of the UCITS Regulations 2011 within the relevant time limit, will become unitholders of the receiving UCITS.
- (5) If a summary of the key points of the merger proposal is provided at the beginning of the document providing information on the merger proposal, it must cross-refer to the parts of the document where further information is provided.
[Note: article 4 of the UCITS implementing Directive No 2]
- 01/07/2011
Specific rules regarding the content of merger information to be provided to unitholders of the receiving UCITS
COLL 7.7.14
See Notes
- 01/07/2011
COLL 7.7.15
See Notes
Key investor information
COLL 7.7.16
See Notes
- 01/07/2011
COLL 7.7.17
See Notes
- 01/07/2011
New unitholders
COLL 7.7.18
See Notes
- 01/07/2011
Method of providing merger information to unitholders
COLL 7.7.19
See Notes
- 01/07/2011
Merger costs
COLL 7.7.20
See Notes
- 01/07/2011
Effective merger date, exchange ratio calculation date and publication of merger
COLL 7.7.21
See Notes
- 01/07/2011
Confirmation obligation on completion of a UCITS merger
COLL 7.7.22
See Notes
- 01/07/2011
COLL 7.7.23
See Notes
- 01/07/2011
COLL 8
Qualified investor schemes
COLL 8.1
Introduction
- 01/12/2004
COLL 8.1.1
See Notes
- 01/04/2004
Purpose
COLL 8.1.2
See Notes
- 01/04/2004
Qualified investor schemes: eligible investors
COLL 8.1.3
See Notes
- 01/11/2007
- Past version of COLL 8.1.3 before 01/11/2007
Qualified investor schemes - explanation
COLL 8.1.4
See Notes
- 01/11/2007
- Past version of COLL 8.1.4 before 01/11/2007
Application and notification procedures
COLL 8.1.5
See Notes
- 01/04/2004
COLL 8.2
Constitution
- 01/12/2004
Application
COLL 8.2.1
See Notes
- 01/04/2004
Classes of unit
COLL 8.2.2
See Notes
- 01/04/2004
Names of schemes, sub-funds, and classes of units
COLL 8.2.3
See Notes
- 01/07/2011
- Past version of COLL 8.2.3 before 01/07/2011
Undesirable and misleading names
COLL 8.2.4
See Notes
- 01/04/2004
Instrument constituting the scheme
COLL 8.2.5
See Notes
- 01/04/2004
Table: contents of the instrument constituting the scheme
COLL 8.2.6
See Notes
1 | Description of the authorised fund | ||||||
Information detailing: | |||||||
(1) | the name of the authorised fund; | ||||||
(2) | that the authorised fund is a qualified investor scheme; and | ||||||
(3) | in the case of an ICVC, whether the head office of the company is situated in England and Wales or Wales or Scotland or Northern Ireland. | ||||||
Property Authorised Investment Funds | |||||||
1A | 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 that 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 in accordance with 6A 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. | ||||||
2 | Constitution | ||||||
The following statements: | |||||||
(1) | the scheme property of the scheme is entrusted to a depositary for safekeeping (subject to any exception permitted by the rules); | ||||||
(2) | if relevant, the duration of the scheme is limited and, if so, for how long; | ||||||
(3) | charges and expenses of the scheme may be taken out of scheme property; | ||||||
(4) | for an ICVC: | ||||||
(a) | what the maximum and minimum sizes of the scheme's capital are; and | ||||||
(b) | the unitholders are not liable for the debts of the company; and | ||||||
(4A) | 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; | ||||||
(5) | for an AUT: | ||||||
(a) | the trust deed: | ||||||
(i) | is made under and governed by the law of England and Wales, or the law of Scotland or the law of Northern Ireland; | ||||||
(ii) | is binding on each unitholder as if he had been a party to it and that he is bound by its provisions; and | ||||||
(iii) | authorises and requires the trustee and the manager to do the things required or permitted of them by its terms; | ||||||
(b) | subject to the provisions of the trust deed and all the rules made under section 247 of the Act (Trust scheme rules): | ||||||
(i) | the scheme (other than sums held 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 individual shares in the scheme property represented by the units held by each unitholder; and | ||||||
(ii) | the sums standing to the credit of any distribution account are held by the trustee on trust to distribute or apply in accordance with COLL 8.5.15 R (Income); | ||||||
(c) | a unitholder 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; and | ||||||
(d) | payments to the trustee by way of remuneration are authorised to be paid (in whole or in part) out of the scheme property. | ||||||
3 | Investment objectives | ||||||
A statement of 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 that the object of the scheme is to invest in property of that kind with the aim of spreading investment risk. | |||||||
4 | Units in the scheme | ||||||
A statement of: | |||||||
(1) | the classes of units which the scheme may issue, indicating, for a scheme which is an umbrella, which class or classes may be issued in respect of each sub-fund; and | ||||||
(2) | the rights attaching to units of each class (including any provisions for the expression in two denominations of such rights). | ||||||
5 | Limitation on issue of and redemption of units | ||||||
Details as to: | |||||||
(1) | the provisions relating to any restrictions on the right to redeem units in any class; and | ||||||
(2) | the circumstances in which the issue of the units of any particular class may be limited. | ||||||
6 | Income and distribution | ||||||
Details of the person responsible for the calculation, transfer, allocation and distribution of income for any class of unit in issue during the accounting period. | |||||||
Redemption or cancellation of units on breach of law or rules | |||||||
6A | 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. | ||||||
7 | Base currency | ||||||
A statement of the base currency of the scheme. | |||||||
8 | Meetings | ||||||
Details of the procedures for the convening of meetings and the procedures relating to resolutions, voting and the voting rights for unitholders. | |||||||
9 | Powers and duties of the authorised fund manager and depositary | ||||||
Where relevant, details of any function to be undertaken by the authorised fund manager and depositary which the rules in COLL require to be stated in the instrument constituting the scheme. | |||||||
10 | Termination and suspension | ||||||
Details of: | |||||||
(1) | the grounds under which the authorised fund manager may initiate a suspension of the scheme and any associated procedures; and | ||||||
(2) | the methodology for determining the rights of unitholders to participate in the scheme property on winding up. | ||||||
10A | Investment in overseas property through an intermediate holding vehicle | ||||||
If investment in an overseas 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 overseas immovables by the scheme. | |||||||
11 | Other relevant matters | ||||||
Details of those matters which enable the scheme, authorised fund manager or depositary to obtain any privilege or power conferred by the rules in COLL which is not otherwise provided for in the instrument constituting the scheme. |
- 21/12/2011
- Past version of COLL 8.2.6 before 21/12/2011
Limited issue
COLL 8.2.7
See Notes
- 01/04/2004
COLL 8.3
Investor relations
- 01/12/2004
Application
COLL 8.3.1
See Notes
- 01/04/2004
Drawing up and availability of prospectus
COLL 8.3.2
See Notes
- 06/04/2006
- Past version of COLL 8.3.2 before 06/04/2006
False or misleading prospectus
COLL 8.3.3
See Notes
- 01/04/2004
Table: contents of qualified investor scheme prospectus
COLL 8.3.4
See Notes
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; | |||
(2) | that the authorised fund is either an ICVC 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 FSA 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; and | |||
(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. | |||
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; | |||
(6) | Where the scheme is a money market fund or a short-term money market fund, a statement identifying it as such a fund and a statement that the scheme's investment objectives and policies will meet the conditions in the definition of money market fund or short-term money market fund, as appropriate. | |||
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. | |||
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 manager. | |||
7 | Directors of an ICVC, other than the ACD | |||
Other than for the ACD: | ||||
(1) | the names and positions in the ICVC of the directors; and | |||
(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 FSA. | ||||
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: | |||
(9) | the circumstances in which direct issue or cancellation of units by the ICVC or the trustee (as appropriate) may occur and the relevant procedures for such issues and cancellations; and | |||
(10) | 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. | |||
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 whether a forward or historic price 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. | ||||
15A | 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 scheme, any amending instrument and the most recent annual reports may be inspected and from which copies may be obtained. | |||
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; and | |||
(5) | for an ICVC, that: | |||
(a) | 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; and | |||
(b) | while the provisions of the OEIC Regulations 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. | |||
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. | |||
18A | Investment in overseas property through an intermediate holding vehicle | |||
If investment in an overseas 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 overseas immovables by the scheme. | ||||
19 | Additional information | |||
Any other material information which is within the knowledge of the directors of an ICVC or the manager of an AUT, or which the directors or manager 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. |
- 21/12/2011
- Past version of COLL 8.3.4 before 21/12/2011
Report and accounts
COLL 8.3.5
See Notes
- 06/08/2006
- Past version of COLL 8.3.5 before 06/08/2006
Contents of the annual report
COLL 8.3.5A
See Notes
Contents of the half-yearly report
COLL 8.3.5B
See Notes
Authorised fund manager's report
COLL 8.3.5C
See Notes
- 06/04/2006
Report of the depositary
COLL 8.3.5D
See Notes
Signing of annual and half-yearly reports
COLL 8.3.5E
See Notes
- 06/03/2010
Alterations to the scheme and notices to unitholders
COLL 8.3.6
See Notes
- 01/04/2004
Alterations to the scheme and notices to unitholders: guidance
COLL 8.3.7
See Notes
- 01/04/2004
Meetings
COLL 8.3.8
See Notes
- 01/04/2004
COLL 8.4
Investment and borrowing powers
- 01/12/2004
Application
COLL 8.4.1
See Notes
- 01/04/2004
COLL 8.4.1A
See Notes
- 06/03/2010
Spread of risk
COLL 8.4.2
See Notes
- 01/04/2004
Investment powers: general
COLL 8.4.3
See Notes
- 01/04/2004
Qualified investor schemes: general
COLL 8.4.4
See Notes
- 06/05/2007
- Past version of COLL 8.4.4 before 06/05/2007
Money market funds
COLL 8.4.4A
See Notes
- 01/07/2011
COLL 8.4.4B
See Notes
- 01/07/2011
Investment in collective investment schemes
COLL 8.4.5
See Notes
- 06/03/2010
- Past version of COLL 8.4.5 before 06/03/2010
Investment in a collective investment scheme that is an umbrella
COLL 8.4.5A
See Notes
- 06/04/2006
COLL 8.4.5B
See Notes
- 06/03/2010
Delivery of property under a transaction in derivatives or a commodities contract
COLL 8.4.6
See Notes
- 01/04/2004
Cover for transactions in derivatives and forward transactions
COLL 8.4.7
See Notes
- 01/04/2004
Valuation of an OTC derivative
COLL 8.4.7A
See Notes
- 06/04/2006
Continuing nature of limits and requirements
COLL 8.4.8
See Notes
- 01/04/2004
Permitted stock lending
COLL 8.4.9
See Notes
- 06/03/2007
- Past version of COLL 8.4.9 before 06/03/2007
General power to borrow
COLL 8.4.10
See Notes
- 01/04/2004
Investment in property
COLL 8.4.11
See Notes
- 01/04/2004
Investment in overseas property through an intermediate holding vehicle
COLL 8.4.11A
See Notes
COLL 8.4.11B
See Notes
- 14/12/2007
Investment limits for immovables
COLL 8.4.12
See Notes
- 01/04/2004
Standing independent valuer and valuation
COLL 8.4.13
See Notes
COLL 8.4.14
See Notes
- 06/10/2008
COLL 8.5
Powers and responsibilities
- 01/12/2004
Application
COLL 8.5.1
See Notes
- 01/04/2004
Functions of the authorised fund manager
COLL 8.5.2
See Notes
- (1) The authorised fund manager must manage the scheme in accordance with:
- (a) the instrument constituting the scheme;
- (b) the rules in this sourcebook;
- (c) the most recently published prospectus; and
- (d) for an ICVC, the OEIC Regulations.
- (2) The authorised fund manager must carry out such functions as are necessary to ensure compliance with the rules in this sourcebook that impose obligations on the authorised fund manager or ICVC, as appropriate.
- (3) The authorised fund manager must:
- (a) make decisions as to the constituents of the scheme property in accordance with the investment objectives and policy of the scheme;
- (b) instruct the depositary how rights attaching to the ownership of scheme property are to be exercised;
- (c) take action immediately to rectify any breach of the pricing methodology set out in the prospectus, which must (unless the authorised fund manager determines on reasonable grounds that the breach is of minimal significance) extend to payment of money:
- (i) by the authorised fund manager to unitholders and former unitholders;
- (ii) by the ACD to the ICVC;
- (iii) by the ICVC to the ACD;
- (iv) by the manager to the trustee; or
- (v) by the trustee (for the account of the AUT) to the manager;
- (d) ensure where relevant that the ICVC complies with the relevant obligations imposed by, and when appropriate, exercises the relevant powers provided under, the OEIC Regulations;
- (e) maintain such records as are necessary to enable the authorised fund manager or the ICVC, as appropriate, to comply with and demonstrate compliance with the rules in this sourcebook and also in the case of an ICVC, the OEIC Regulations; and
- (f) maintain for a period of six years a daily record of the units held, acquired or disposed of by the authorised fund manager including the classes of such units, and of the balance of any acquisitions and disposals.
- 01/04/2004
Duties of the authorised fund manager: investment and borrowing powers
COLL 8.5.3
See Notes
- 01/04/2004
Duties of the ACD: umbrella schemes
COLL 8.5.3A
See Notes
- 21/12/2011
COLL 8.5.3B
See Notes
- 21/12/2011
Duties of the depositary
COLL 8.5.4
See Notes
- 01/04/2004
Delegation
COLL 8.5.5
See Notes
- 01/04/2004
Delegation and responsibility for regulatory obligations
COLL 8.5.6
See Notes
- 01/04/2009
- Past version of COLL 8.5.6 before 01/04/2009
Conflicts of interest
COLL 8.5.7
See Notes
- 01/04/2004
The register of unitholders: AUTs
COLL 8.5.8
See Notes
- 01/04/2004
Valuation, pricing and dealing
COLL 8.5.9
See Notes
- 01/07/2011
- Past version of COLL 8.5.9 before 01/07/2011
Maintaining the value of a short-term money market fund
COLL 8.5.9A
See Notes
- 01/07/2011
COLL 8.5.9B
See Notes
- 01/07/2011
Issues and cancellations of units
COLL 8.5.10
See Notes
- 01/04/2004
Issue and cancellation of units in multiple classes
COLL 8.5.10A
See Notes
- 06/03/2007
Sale and redemption
COLL 8.5.11
See Notes
- 01/04/2004
Limited redemption periods
COLL 8.5.12
See Notes
- 01/04/2004
Property Authorised Investment Funds
COLL 8.5.12A
See Notes
- 06/06/2008
COLL 8.5.12B
See Notes
- 06/06/2008
Payments
COLL 8.5.13
See Notes
- 01/04/2004
Exemption from liability to account for profits
COLL 8.5.14
See Notes
- 01/04/2004
Income
COLL 8.5.15
See Notes
COLL 8.6
Termination, suspension, and schemes of arrangement
- 01/12/2004
Application
COLL 8.6.1
See Notes
- 01/04/2004
Termination
COLL 8.6.2
See Notes
- 01/04/2004
Suspension
COLL 8.6.3
See Notes
- 06/01/2009
- Past version of COLL 8.6.3 before 06/01/2009
Schemes of arrangement
COLL 8.6.5
See Notes
- 01/04/2004
COLL 8 Annex 1
Qualified Investor Schemes: eligible investors
See Notes
Issue or transfer of units to: | Issue or transfer of units (see Note 1) in a qualified investor scheme which is: | |
Category 1 person A person: (1) who is already a participant in an unregulated collective investment scheme or a qualified investor scheme; or (2) who has been, in the last 30 months, a participant in an unregulated collective investment scheme or a qualified investor scheme. | (1) that collective investment scheme; or (2) any other collective investment scheme whose underlying property and risk profile are both 'substantially similar' (see Note 2) to those of that collective investment scheme; or (3) a collective investment scheme which is intended to absorb or take over the assets of that collective investment scheme; or (4) a collective investment scheme, units in which are being offered by its operator as an alternative to cash on the liquidation of that collective investment scheme. | |
Category 2 person A person: (1) for whom the authorised fund manager or an associate has taken reasonable steps to ensure that investment in the collective investment scheme is suitable; and (2) who is an 'established' or 'newly accepted' client of the authorised fund manager or of an associate (see Notes 3 & 4). | that collective investment scheme. | |
Category 3 person A person who is eligible to participate in a scheme constituted under: (1) the Church Funds Investment Measure 1958; (2) section 96 of the Charities Act 2011; or (3) section 25 of the Charities Act (Northern Ireland) 1964. | any such collective investment scheme | |
Category 4 person An eligible employee, that is, a person who is: (1) an officer; (2) an employee; (3) a former officer or employee; or (4) a member of the immediate family of any of (1)-(3); of an employer which is (or is in the same group as) the firm, or which has accepted responsibility for the activities of the firm in carrying out the designated investment business in question. | (1) A collective investment scheme of which the instrument constituting the scheme: (a) restricts the scheme property, apart from cash and near cash, to: (i) (where the employer is a company) shares in and debentures of the company or any other connected company (see Note 5); (ii) (in any case), any property, provided that the scheme takes the form of a trust which the firm reasonably believes not to contain any risk that any eligible employee may be liable to make any further payments (other than charges) for investment transactions earlier entered into, which the eligible employee was not aware of at the time he entered into them; and (b) (in a case falling within A(1) above) restricts participation in the scheme to eligible employees, the employer and any connected company. (2) Any collective investment scheme provided that the participation of eligible employees is to facilitate their co-investment: (a) with one or more companies in the same group as their employer (which may include the employer); and/or (b) with one or more clients of such a company. | |
Category 5 person An exempt person (other than a person exempted only by section 39 of the Act (Exemption of appointed representatives)) if the issue or transfer of units relates to a regulated activity in respect of which the person is exempt from the general prohibition. | Any collective investment scheme. | |
Category 6 person An eligible counterparty or a professional client. | Any collective investment scheme in relation to which the client is categorised as a professional client or eligible counterparty. | |
Category 7 person A person: (1) in relation to whom the authorised fund manager or an associate has undertaken an adequate assessment of his expertise, experience and knowledge and that assessment gives reasonable assurance, in light of the nature of the transactions or services envisaged, that the person is capable of making his own investment decisions and understanding the risks involved; (2) to whom the authorised fund manager or an associate has given a clear written warning of the protections he may lose; and (3) who has stated in writing, in a separate document from the contract, that he is aware of the consequences of losing such protections. | Any collective investment scheme covered by the assessment. |
The following Notes explain certain words and phrases used in the table above. | ||
Note 1 | Issue or transfer of units to a category of person includes any nominee company acting for such a person. | |
Note 2 | The risk profile of a scheme will be substantially similar to that of another scheme only if there is such similarity in relation to both liquidity and volatility. | |
Note 3 | A person is an 'established client' of another person if he has been and remains an actual client of that person in relation to designated investment business done with or through that other person. | |
Note 4 | A person is a 'newly accepted' client of a firm if: | |
(1) | a written agreement relating to designated investment business exists between the client and the firm (or, if the client is normally resident outside the United Kingdom, an oral or written agreement); and | |
(2) | that agreement has been obtained without any contravention of any rule in COBS applying to the firm or (as far as the firm is reasonably aware) any other authorised person. | |
Note 5 | A company is 'connected' with another company if: | |
(1) | they are in the same group; or | |
(2) | one company is entitled either alone or with another company in the same group, to exercise or control the exercise of a majority of the voting rights attributable to the share capital, which are exercisable in all circumstances at any general meeting of the other company or of its holding company. |
Export chapter as
COLL 9
Recognised schemes
COLL 9.1
Application and general information
- 01/12/2004
Application
COLL 9.1.1
See Notes
- 01/04/2004
Purpose
COLL 9.1.2
See Notes
- 01/04/2004
General information
COLL 9.1.3
See Notes
- 01/04/2004
COLL 9.2
Section 264 recognised schemes
- 01/12/2004
COLL 9.2.1
See Notes
- 01/07/2011
- Past version of COLL 9.2.1 before 01/07/2011
Marketing of units of an EEA UCITS scheme
COLL 9.2.2
See Notes
[Note: article 16(1) second paragraph, article 91(1) and 91(4) of the UCITS Directive]
- 01/07/2011
COLL 9.3
Section 270 and 272 recognised schemes
- 01/12/2004
Information and documents to be supplied for a section 270 notification or section 272 application Information and documents to be supplied for a section 272 application
COLL 9.3.1
See Notes
- 01/04/2004
Additional information required in the prospectus for an application under section 272
COLL 9.3.2
See Notes
- 01/04/2004
Preparation and maintenance of prospectus
COLL 9.3.3
See Notes
- 01/04/2004
COLL 9.4
Facilities in the United Kingdom
- 01/12/2004
General
COLL 9.4.1
See Notes
- 01/04/2004
Documents
COLL 9.4.2
See Notes
- 22/03/2012
- Past version of COLL 9.4.2 before 22/03/2012
Price and redemption
COLL 9.4.3
See Notes
- 01/04/2004
Bearer certificates and characteristics of units in the scheme
COLL 9.4.4
See Notes
- 01/04/2004
Complaints
COLL 9.4.5
See Notes
- 01/04/2004
Place of facilities
COLL 9.4.6
See Notes
- 01/04/2004
COLL 10
Fees
COLL 10.1
The provisions in relation to fees for collective investments schemes are set out in FEES 1,2, 3 and 4
- 01/01/2006
- Past version of COLL 10.1 before 01/01/2006
COLL 10.2
The provisions in relation to fees for collective investments schemes are set out in FEES 1,2, 3 and 4
- 01/01/2006
- Past version of COLL 10.2 before 01/01/2006
COLL 10.3
The provisions in relation to fees for collective investments schemes are set out in FEES 1,2, 3 and 4
- 01/01/2006
- Past version of COLL 10.3 before 01/01/2006
COLL 11
Master-feeder arrangements under the UCITS Directive
COLL 11.1
Introduction
- 01/07/2011
Application
COLL 11.1.1
See Notes
- 01/07/2011
Table of application
COLL 11.1.2
See Notes
Reference | ICVC | ACD | Any other directors of an ICVC | Manager | Trustee of an AUT or depositary of an ICVC |
11.1.1R | x | x | x | x | x |
11.1.3G | x | x | x | x | x |
11.2.1G | x | x | x | x | |
11.2.2R | x | x | x | x | |
11.3.1R | x | x | x | x | |
11.3.2R | x | x | x | x | |
11.3.3G | x | x | x | x | |
11.3.4G | x | x | x | x | |
11.3.5R | x | x | x | x | |
11.3.6R | x | x | x | x | |
11.3.7R | x | x | x | x | |
11.3.8R | x | x | x | x | |
11.3.9R | x | x | x | x | |
11.3.10G | x | x | x | x | |
11.3.11R | x | x | x | x | |
11.3.12R | x | x | x | x | |
11.3.13R | x | x | x | x | |
11.3.14G | x | x | x | x | |
11.4.1R | x | x | x | x | x |
11.4.2R | x | ||||
11.4.3R | x | ||||
11.4.4G | x | ||||
11.4.5G | x | ||||
11.5.6R | x | x | x | x | |
11.6.1G | x | x | x | x | x |
11.6.2R | x | x | x | x | x |
11.6.3R | x | x | x | x | |
11.6.4R | x | x | x | x | |
11.6.5R | x | x | x | x | |
11.6.6R | x | x | x | x | |
11.6.7R | x | x | x | x | |
11.6.8G | x | x | x | x | |
11.6.9R | x | x | x | x | |
11.6.10R | x | x | x | x | |
11.6.11G | x | x | x | x | |
11.6.12R | x | x | x | x | |
11.6.13R | x | x | x | x | |
11 Annex 1R | x | x | x | x | |
11 Annex 2R | x | x | x | x | |
Note 1: "x" means "applies", but not every paragraph in every provision referred to will necessarily apply. | |||||
Note 2: COLL 11.5 (with the exception of COLL 11.5.6 R) applies to auditors. |
- 01/07/2011
Purpose
COLL 11.1.3
See Notes
- 01/07/2011
COLL 11.2
Approval of a feeder UCITS
- 01/07/2011
Explanation
COLL 11.2.1
See Notes
- 01/07/2011
Application for approval of an investment in a master UCITS
COLL 11.2.2
See Notes
- 01/07/2011
COLL 11.3
Co-ordination and information exchange for master and feeder UCITS
- 01/07/2011
Authorised fund manager of a master UCITS: provision of documentation
COLL 11.3.1
See Notes
- 01/07/2011
Master-feeder agreement and internal conduct of business rules
COLL 11.3.2
See Notes
- 01/07/2011
COLL 11.3.3
See Notes
- 01/07/2011
COLL 11.3.4
See Notes
- 01/07/2011
Law applicable to the master-feeder agreement
COLL 11.3.5
See Notes
and that both parties agree to the exclusive jurisdiction of the courts of the EEA State whose law they have stipulated to be applicable to the agreement.
- 01/07/2011
Avoidance of opportunities for market timing
COLL 11.3.6
See Notes
- (1) The authorised fund managers of a master UCITS and its feeder UCITS must take appropriate measures to co-ordinate the timing of their net asset value calculation and publication, including the publication of dealing prices, in order to avoid market timing in their units, preventing arbitrage opportunities.
- (2) Where either the master UCITS or feeder UCITS is an EEA UCITS scheme managed by an EEA UCITS management company, the authorised fund manager must co-ordinate with that management company.
- 01/07/2011
Obligations of the feeder UCITS
COLL 11.3.7
See Notes
- 01/07/2011
Inducements
COLL 11.3.8
See Notes
that fee, commission or other monetary benefit must be paid into the scheme property of the feeder UCITS.
- 01/07/2011
Obligations of the master UCITS
COLL 11.3.9
See Notes
- 01/07/2011
COLL 11.3.10
See Notes
- 01/07/2011
COLL 11.3.11
See Notes
- 01/07/2011
COLL 11.3.12
See Notes
- 01/07/2011
Obligations to unitholders of a master UCITS
COLL 11.3.13
See Notes
whether it would unfairly prejudice the interests of those unitholders in the master UCITS other than the feeder UCITS by not making that information available to them, or by not informing them of that matter at the same time in an appropriate manner; and
- 01/07/2011
COLL 11.3.14
See Notes
- 01/07/2011
COLL 11.4
Depositaries
- 01/07/2011
Information-sharing agreement between depositaries
COLL 11.4.1
See Notes
- 01/07/2011
Contents of the information-sharing agreement between depositaries
COLL 11.4.2
See Notes
- 01/07/2011
Notification of irregularities
COLL 11.4.3
See Notes
- 01/07/2011
COLL 11.4.4
See Notes
- 01/07/2011
Disclosure by a trustee or depositary
COLL 11.4.5
See Notes
- 01/07/2011
COLL 11.5
Auditors
- 01/07/2011
Information-sharing agreement between auditors
COLL 11.5.1
See Notes
- 01/07/2011
Contents of the information-sharing agreement between auditors
COLL 11.5.2
See Notes
- 01/07/2011
Preparation of the audit report
COLL 11.5.3
See Notes
- 01/07/2011
COLL 11.5.4
See Notes
- 01/07/2011
Disclosure by an auditor
COLL 11.5.5
See Notes
- 01/07/2011
Responsibility of authorised fund managers
COLL 11.5.6
See Notes
- 01/07/2011
COLL 11.6
Winding up, merger and division of master UCITS
- 01/07/2011
Explanation
COLL 11.6.1
See Notes
- 01/07/2011
Winding up and liquidation of master UCITS: Time limit within which a master UCITS is to be wound up pursuant to FSA direction
COLL 11.6.2
See Notes
- 01/07/2011
Application for approval by a feeder UCITS where a master UCITS is wound up
COLL 11.6.3
See Notes
- 01/07/2011
Timing of applications for approval: winding up of a master UCITS
COLL 11.6.4
See Notes
- 01/07/2011
Application for approval by a feeder UCITS where a master UCITS merges or divides
COLL 11.6.5
See Notes
- 01/07/2011
Interpretation of COLL 11.6.5R
COLL 11.6.6
See Notes
- 01/07/2011
Timing of applications for approval: merger or division of a master UCITS
COLL 11.6.7
See Notes
- 01/07/2011
Repurchase or redemption of units in a master UCITS
COLL 11.6.8
See Notes
- 01/07/2011
COLL 11.6.9
See Notes
the authorised fund manager of the feeder UCITS must exercise the right to repurchase or redeem its units in the master UCITS under regulation 12(4) of the UCITS Regulations 2011.
- 01/07/2011
Conditions on reinvestment of cash
COLL 11.6.10
See Notes
- 01/07/2011
COLL 11.6.11
See Notes
- 01/07/2011
Requirements following approval by the FSA
COLL 11.6.12
See Notes
- 01/07/2011
Notification by feeder UCITS of intention to be wound up
COLL 11.6.13
See Notes
- 01/07/2011
COLL 11 Annex 1
Contents of the standard master-feeder agreement
- 01/07/2011
See Notes
(1) | Provisions related to access to information by a master UCITS and a feeder UCITS: | ||
(a) | how and when the master UCITS provides the feeder UCITS with a copy of its instrument constituting the scheme, prospectus and key investor information or any amendment of them; | ||
(b) | how and when the master UCITS informs the feeder UCITS of a delegation of investment management and risk management functions to third parties in accordance with COLL 6.6.15AR; | ||
(c) | where applicable, how and when the master UCITS provides the feeder UCITS with internal operational documents, such as its risk management process and its compliance reports; | ||
(d) | what details of breaches by the master UCITS of; | ||
(i) | the law; | ||
(ii) | the instrument constituting the scheme; and | ||
(iii) | the master-feeder agreement; | ||
must be notified to the feeder UCITS and the manner and timing thereof; | |||
(e) | where a feeder UCITS uses derivatives for hedging purposes, how and when the master UCITS will provide the feeder UCITS with information about its actual exposure to derivatives to enable the feeder UCITS to calculate its own global exposure as envisaged by COLL 5.8.4 R (Exposure to derivatives); and | ||
(f) | a statement that the master UCITS must inform the feeder UCITS of any other information-sharing arrangements entered into with third parties and, where applicable, how and when the master UCITS makes those other information-sharing arrangements available to the feeder UCITS. | ||
[Note: article 8 of the UCITS implementing Directive No 2] | |||
(2) | Provisions related to the basis of investment and divestment by the feeder UCITS: | ||
(a) | a statement of which classes of units of the master UCITS are available for investment by the feeder UCITS; | ||
(b) | the charges and expenses to be borne by the feeder UCITS and details of any rebate or retrocession of charges or expenses by the master UCITS; and | ||
(c) | where applicable, the terms on which any initial or subsequent transfer of assets in kind may be made from the feeder UCITS to the master UCITS. | ||
[Note: article 9 of the UCITS implementing Directive No 2] | |||
(3) | Provisions related to standard dealing arrangements: | ||
(a) | co-ordination of the frequency and timing of the net asset value calculation process and the publication of prices of units; | ||
(b) | co-ordination of transmission of dealing orders by the feeder UCITS, including, where applicable, the role of transfer agents or any other third party; | ||
(c) | where applicable, any arrangements necessary to take account of the fact that the units of the master UCITS or the feeder UCITS are listed or traded on a secondary market; | ||
(d) | where necessary, appropriate measures to ensure compliance with the requirements in COLL 11.3.6 R (Avoidance of opportunities for market timing); | ||
(e) | where the units of the feeder UCITS and the master UCITS are denominated in different currencies, the basis for conversion of dealing orders; | ||
(f) | settlement cycles and payment details for purchases or subscriptions and repurchases or redemptions of units of the master UCITS including, where agreed between the parties, the terms on which the master UCITS may settle redemption requests by a transfer of assets in kind to the feeder UCITS, notably where a master UCITS is wound up, merges with another UCITS scheme or EEA UCITS scheme or divides into two or more such schemes; | ||
(g) | procedures to ensure enquiries and complaints from unitholders are handled appropriately; and | ||
(h) | where the instrument constituting the scheme and prospectus of the master UCITS give it certain rights or powers in relation to unitholders, and the master UCITS chooses to limit or forego the exercise of all or any such rights and powers in relation to the feeder UCITS, a statement of the terms on which it does so. | ||
[Note: article 10 of the UCITS implementing Directive No 2] | |||
(4) | Provisions related to events affecting dealing arrangements: | ||
(a) | the manner and timing of a notification by either the master UCITS or the feeder UCITS of the temporary suspension and resumption of repurchase, redemption, purchase or subscription of its units; and | ||
(b) | the arrangements for notifying and resolving pricing errors in the master UCITS. | ||
[Note: article 11 of the UCITS implementing Directive No 2] | |||
(5) | Provisions related to the standard arrangements for the audit report: | ||
(a) | where the feeder UCITS and the master UCITS have the same accounting years, the co-ordination of the production of their periodic reports; and | ||
(b) | where the feeder UCITS and the master UCITS have different accounting years, arrangements for the feeder UCITS to obtain any necessary information from the master UCITS to enable it to produce its periodic reports on time and which ensure that the auditor of the master UCITS is in a position to produce an ad hoc report on the closing date of the accounting year of the feeder UCITS in accordance with COLL 11.5.4 R (Preparation of the audit report). | ||
[Note: article 12 of the UCITS implementing Directive No 2] | |||
(6) | Provisions related to changes to the standing arrangements: | ||
How and when notice is to be given: | |||
(a) | by the master UCITS of proposed and effective amendments to its instrument constituting the scheme, prospectus and key investor information, if these details differ from the standard arrangements for notification of unitholders laid down in the instrument constituting the scheme or prospectus of the master UCITS; | ||
(b) | by the master UCITS of a planned or proposed winding up, merger or division; | ||
(c) | by either the feeder UCITS or the master UCITS that it has ceased or will cease to meet the qualifying conditions to be a feeder UCITS or a master UCITS respectively; | ||
(d) | by either the feeder UCITS or the master UCITS that it intends to replace its management company, its depositary, its auditor or any third party which is mandated to carry out investment management or risk management functions; and | ||
(e) | by the master UCITS of other changes to standing arrangements that it undertakes to provide. | ||
[Note: article 13 of the UCITS implementing Directive No 2] |
- 01/07/2011
COLL 11 Annex 2
Contents of the internal conduct of business rules
- 01/07/2011
See Notes
(1) | Provisions related to conflicts of interest | ||
(a) | The internal conduct of business rules referred to in COLL 11.3.2R (2) must include appropriate measures to mitigate conflicts of interest that may arise between: | ||
(i) | the feeder UCITS and the master UCITS; or | ||
(ii) | the feeder UCITS and other unitholders of the master UCITS; | ||
to the extent that these are not sufficiently addressed by the measures applied by the management company in order to meet the requirements of the provisions listed in (b). | |||
(b) | The provisions referred to in (a) are: | ||
(i) | SYSC 10.1.4 R (Types of conflicts); | ||
(ii) | SYSC 10.1.6 R (Record of conflicts); | ||
(iii) | SYSC 10.1.10 R (Conflicts policy); | ||
(iv) | SYSC 10.1.11 R (Contents of policy); | ||
(v) | SYSC 10.1.17 R (Additional requirements for a management company); | ||
(vi) | SYSC 10.1.19 R (Structure and organisation of a management company); | ||
(vii) | SYSC 10.1.20 R (Avoidance of conflicts of interest for a management company); | ||
(viii) | SYSC 10.1.21 R (Disclosure of conflicts for a management company); and | ||
(ix) | COLL 6.6A.6 R (Strategies for the exercise of voting rights); | ||
or the equivalent provisions implementing articles 12(1)(b) and 14(1)(d) of the UCITS Directive and Chapter III of the UCITS implementing Directive. | |||
[Note: article 15 of the UCITS implementing Directive No 2] | |||
(2) | Provisions related to the basis of investment and divestment by the feeder UCITS: | ||
(a) | a statement of which classes of units of the master UCITS are available for investment by the feeder UCITS; | ||
(b) | the charges and expenses to be borne by the feeder UCITS and details of any rebate or retrocession of charges or expenses by the master UCITS; and | ||
(c) | where applicable, the terms on which any initial or subsequent transfer of assets in kind may be made from the feeder UCITS to the master UCITS. | ||
[Note: article 16 of the UCITS implementing Directive No 2] | |||
(3) | Provisions related to standard dealing arrangements: | ||
(a) | co-ordination of the frequency and timing of the net asset value calculation process and the publication of prices of units; | ||
(b) | co-ordination of transmission of dealing orders by the feeder UCITS, including, where applicable, the role of transfer agents or any other third party; | ||
(c) | where applicable, any arrangements necessary to take account of the fact that units of the master UCITS or the feeder UCITS are listed or traded on a secondary market; | ||
(d) | where necessary, appropriate measures to ensure compliance with the requirements in COLL 11.3.6 R (Avoidance of opportunities for market timing); | ||
(e) | where the units of the feeder UCITS and the master UCITS are denominated in different currencies, the basis for conversion of dealing orders; | ||
(f) | settlement cycles and payment details for purchases or subscriptions and repurchases or redemptions of units of the master UCITS including, where agreed between the parties, the terms on which the master UCITS may settle redemption requests by a transfer of assets in kind to the feeder UCITS, notably where a master UCITS is wound up, merges with another UCITS scheme or EEA UCITS scheme or divides into two or more such schemes; and | ||
(g) | where the instrument constituting the scheme and prospectus of the master UCITS give it certain rights or powers in relation to unitholders, and the master UCITS chooses to limit or forego the exercise of all or any such rights and powers in relation to the feeder UCITS, a statement of the terms on which it does so. | ||
[Note: article 17 of the UCITS implementing Directive No 2] | |||
(4) | Provisions related to events affecting dealing arrangements: | ||
(a) | the manner and timing of notification by either the master UCITS or the feeder UCITS of the temporary suspension and resumption of repurchase, redemption, purchase or subscription of its units; and | ||
(b) | the arrangements for notifying and resolving pricing errors in the master UCITS. | ||
[Note: article 18 of the UCITS implementing Directive No 2] | |||
(5) | Provisions related to the standard arrangements for the audit report: | ||
(a) | where the feeder UCITS and the master UCITS have the same accounting years, the co-ordination of the production of their periodic reports; and | ||
(b) | where the feeder UCITS and the master UCITS have different accounting years, arrangements for the feeder UCITS to obtain any necessary information from the master UCITS to enable it to produce its periodic reports on time and which ensure that the auditor of the master UCITS is in a position to produce an ad hoc report on the closing date of the accounting year of the feeder UCITS in accordance with COLL 11.5.4 R (Preparation of the audit report). | ||
[Note: article 19 of the UCITS implementing Directive No 2] |
- 01/07/2011
COLL 12
Management company and product passports under the UCITS Directive
COLL 12.1
Introduction
- 01/07/2011
Application
COLL 12.1.1
See Notes
- 01/07/2011
Purpose
COLL 12.1.2
See Notes
- 01/07/2011
COLL 12.1.3
See Notes
- 01/07/2011
COLL 12.2
UK UCITS management companies
- 01/07/2011
Application
COLL 12.2.1
See Notes
- 01/07/2011
References in COLL to authorised fund manager
COLL 12.2.2
See Notes
- 01/07/2011
Home State/Host State split of regulatory and supervisory responsibilities for UK UCITS management companies operating under a passport
COLL 12.2.3
See Notes
- 01/07/2011
Arrangements and organisational decisions
COLL 12.2.4
See Notes
- 01/07/2011
COLL 12.2.5
See Notes
- 01/07/2011
Rules of conduct: UK UCITS management companies operating in another Member State
COLL 12.2.6
See Notes
- 01/07/2011
Notification to the UCITS Home State regulator
COLL 12.2.7
See Notes
- 01/07/2011
Requirement to make information available to the public or the competent authority of the scheme's Home Member State
COLL 12.2.8
See Notes
- 01/07/2011
COLL 12.3
EEA UCITS management companies
- 01/07/2011
Application
COLL 12.3.1
See Notes
- 01/07/2011
Purpose
COLL 12.3.2
See Notes
- 01/07/2011
Further reading on the UCITS management company passport regime
COLL 12.3.3
See Notes
- 01/07/2011
Provision of documentation to the FSA: EEA UCITS management companies
COLL 12.3.4
See Notes
- 01/07/2011
COLL fund rules under the management company passport: the fund application rules
COLL 12.3.5
See Notes
- 01/07/2011
Requirement to make information available to the public or the FSA
COLL 12.3.6
See Notes
- 01/07/2011
EEA UCITS management companies: compliance with FSA rules
COLL 12.3.7
See Notes
- 01/07/2011
EEA UCITS management companies: conduct of business rules
COLL 12.3.8
See Notes
- 01/07/2011
COLL 12.4
UCITS product passport
- 01/07/2011
Application
COLL 12.4.1
See Notes
- 01/07/2011
COLL 12.4.2
See Notes
- 01/07/2011
Availability of facilities
COLL 12.4.3
See Notes
- 01/07/2011
Keeping fund documentation up to date and notification of changes
COLL 12.4.4
See Notes
- 01/07/2011
Provision of information and documents
COLL 12.4.5
See Notes
- 01/07/2011
COLL 12.4.6
See Notes
- 01/07/2011
Reference to the scheme's legal form
COLL 12.4.7
See Notes
- 01/07/2011
UCITS Host State's access to documents and updates of documents
COLL 12.4.8
See Notes
- 01/07/2011
COLL 13
Operation of feeder NURS
COLL 13.1
Introduction
- 27/04/2012
Application
COLL 13.1.1
See Notes
- 27/04/2012
Purpose
COLL 13.1.2
See Notes
- 27/04/2012
COLL 13.2
Operational requirements for feeder NURS
- 27/04/2012
Application
COLL 13.2.1
See Notes
- 27/04/2012
Pre-investment requirements of the authorised fund manager of a feeder NURS
COLL 13.2.2
See Notes
- 27/04/2012
Ownership of units in a feeder NURS
COLL 13.2.3
See Notes
- 27/04/2012
Charges made by the qualifying master scheme or its operator to a feeder NURS on investment or disposal
COLL 13.2.4
See Notes
- 27/04/2012
Avoidance of opportunities for market timing
COLL 13.2.5
See Notes
- 27/04/2012
Inducements
COLL 13.2.6
See Notes
that fee, commission or other monetary benefit must be paid into the scheme property of the feeder NURS within four business days of receipt of that fee, commission or other monetary benefit.
- 27/04/2012
Obligations to unitholders of a qualifying master scheme
COLL 13.2.7
See Notes
- 27/04/2012
Export chapter as
COLL Appendix
KII Regulation
COLL Appendix 1EU
KII Regulation
- 01/07/2011
See Notes
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32), and in particular Article 75(4), Article 78(7), and Article 81(2) thereof,
Whereas:
(1) Directive 2009/65/EC specifies the main principles that should be followed in preparing and providing key investor information, including requirements concerning its format and presentation, its objectives, the main elements of the information that is to be disclosed, who should deliver the information to whom, and the methods that should be used for such delivery. Details on the content and format have been left to be developed further by means of implementing measures, which should be specific enough to ensure that investors receive the information they need in respect to particular fund structures.
(2) The form of a Regulation is justified as this form alone can ensure that the exhaustive content of key investor information is harmonised. Furthermore, a key investor information document will be more efficient where requirements applicable to it are identical in all Member States. All stakeholders should benefit from a harmonised regime on the form and content of the disclosure, which will ensure that information about investment opportunities in the UCITS' market is consistent and comparable.
(3) In some cases, key investor information can be delivered more effectively when the key investor information document is provided to investors through a website, or where the key investor information document is attached to another document when it is given to the potential investor. In these cases, however, the context in which the key investor information document appears should not undermine the key investor information document, or imply that it is an item of promotional literature or that accompanying items of promotional literature are of equal or greater relevance to the retail investor.
(4) It is necessary to ensure that the content of the information is relevant, the organisation of the information is logical and the language appropriate for retail investors. To address these concerns, this Regulation should ensure that the key investor information document is able to engage investors and aid comparisons through its format, presentation and the quality and nature of the language used. This Regulation aims to ensure consistency in the format of the document, including a common running order with identical headings.
(5) This Regulation specifies the content of the information on investment objectives and the investment policy of UCITS so that investors can easily see whether or not a fund is likely to be suitable for their needs. For this reason, the information should indicate whether returns can be expected in the form of capital growth, payment of income, or a combination of both. The description of the investment policy should indicate to the investor what the overall aims of the UCITS are and how these objectives are to be achieved. With regard to the financial instruments in which investments are to be made, only those which may have a material impact on UCITS' performance need to be mentioned, rather than all possible eligible instruments.
(6) This Regulation lays down detailed rules on the presentation of the risk and reward profile of the investment, by requiring use of a synthetic indicator and specifying the content of narrative explanations of the indicator itself and risks which are not captured by the indicator, but which may have a material impact on the risk and reward profile of the UCITS. In applying the rules on the synthetic indicator account should be taken of the methodology for the calculation of the synthetic indicator as developed by competent authorities working within the Committee of European Securities Regulators. The management company should decide on a case-by-case basis which specific risks should be disclosed by analysing the particular characteristics of each fund, bearing in mind the need to avoid over-burdening the document with information that retail investors will find difficult to understand. In addition the narrative explanation of the risk and reward profile should be limited in size in terms of the amount of space it occupies within the key investor information document. It should be possible to have cross-references to the prospectus of the UCITS where full details of its risks are disclosed.
(7) Consistency should be ensured between the explanation of risks in the key investor information document and the management company's internal processes related to risk management, established in accordance with Commission Directive 2010/43/EU of 1 July 2010 implementing Directive 2009/65/EC of the European Parliament and the Council as regards organisational requirements, conflicts of interests, conduct of business, risk management and content of the agreement between a depositary and a management company (see page 42 of this Official Journal). For instance, so as to ensure consistency, the permanent risk management function should where appropriate be given the opportunity to review and comment on the risk and reward profile section of the key investor information document.
(8) This Regulation specifies the common format for the presentation and explanation of charges, including relevant warnings, so that investors are appropriately informed about the charges they will have to incur and their proportion to the amount of capital actually invested into the fund. In applying these rules, account should be taken of the work on the methodology for the calculation of charges figures as developed by competent authorities working within the Committee of European Securities Regulators.
(9) The detailed rules on the presentation of information about past performance are based on the requirements for such information in the Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (OJ L 145, 30.4.2004, p. 1). This Regulation supplements the rules of Directive 2004/39/EC by including specific requirements necessary for harmonising the information for the purpose of facilitating comparisons between different key investor information documents. In particular, this Regulation prescribes that only net annual returns shall be shown, through a bar chart format. Certain aspects of the presentation of the bar chart should be regulated, including the limited circumstances in which simulated data might be used.
(10) It should be recognised that cross-referring to information might be useful to the investor but it is essential that the key investor information document should contain all information necessary for the investor to understand the essential elements of the UCITS. If cross-references to sources of information other than the prospectus and periodic reports are used, it should be made clear that the prospectus and periodic reports are the primary sources of additional information for investors, and the cross-references should not downplay their significance.
(11) The key investor information document should be reviewed and revised as appropriate and as frequently as is necessary to ensure that it continues to meet the requirements for key investor information specified in Articles 78(2) and 79(1) of Directive 2009/65/EC. As a matter of good practice, management companies should review the key investor information document before entering into any initiative that is likely to result in a significant number of new investors acquiring units in the fund.
(12) The form or content of key investor information may need to be adjusted to specific cases. Consequently, this Regulation tailors the general rules applicable to all UCITS so as to take into account the specific situation of certain types of UCITS, namely those having different investment compartments or share classes, those with fund of funds structures, those with master-feeder structures, and those that are structured, such as capital protected or comparable UCITS.
(13) With regard to UCITS having different share classes, there should be no obligation to produce a separate key investor information document for every such share class, so long as investors' interests are not compromised. The details of two or more classes may be combined into a single key investor information document only where this can be done without making the document too complicated or crowded. Alternatively, a representative class may be selected, but only in cases where there is sufficient similarity between the classes such that information about the representative class is fair, clear and not misleading as regards the represented class. In determining whether the use of a representative class is fair, clear and not misleading, regard should be had to the characteristics of the UCITS, the nature of the differences represented by each class, and the range of choices on offer to each investor or group of investors.
(14) In the case of a fund of funds, the right balance is kept between the information on the UCITS that the investor invests in and its underlying collectives. The key investor information document of a fund of funds should therefore be prepared on the basis that the investor does not wish or need to be informed in detail about the individual features of each of the underlying collectives, which in any case are likely to vary from time to time if the UCITS is being actively managed. However, in order for the key investor information document to deliver effective disclosure of the fund of funds' objective and investment policy, risk factors, and charging structure, the characteristics of its underlying funds should be transparent.
(15) In the case of master-feeder structures, the description of the feeder UCITS' risk and reward profile should not be materially different to that of the corresponding section in the master UCITS' key investor information document so that the feeder can copy information from the key investor information document of the master wherever it is relevant. However, this information should be supplemented by relevant statements or duly adjusted in those cases where ancillary assets held by the feeder might modify the risk profile compared to the master, addressing the risks inherent in these ancillary assets, for instance where derivatives are used. The combined costs of investing in the feeder and the master should be disclosed to investors in the feeder.
(16) With regard to structured UCITS, such as capital protected and other comparable UCITS, the provision of prospective performance scenarios in place of past performance information is required. Prospective performance scenarios involve calculating the expected return of the fund under favourable, adverse, or neutral hypotheses regarding market conditions. These scenarios should be chosen so as to effectively illustrate the full range of possible outcomes according to the formula.
(17) Where the key investor information and the prospectus are to be provided in a durable medium other than paper or by means of a website, additional safety measures are necessary for investor protection reasons, so as to ensure that investors receive information in a form relevant to their needs, and so as to maintain the integrity of the information provided, prevent alterations that undermine its comprehensibility and effectiveness, and avoid manipulation or modification by unauthorised persons. This Regulation contains a reference to rules on durable medium laid down in the Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive (OJ L 241, 2.9.2006, p. 26) in order to ensure the equal treatment of investors and a level playing field in financial sectors.
(18) In order to allow management companies and investment companies to adapt to the new requirements contained in this Regulation in an efficient and effective manner, the starting date of application of this Regulation should be aligned with the transposition of Directive 2009/65/EC.
(19) The Committee of European Securities Regulators, established by Commission Decision 2009/77/EC (OJ L 25, 29.1.2009, p. 18), has been consulted for technical advice.
(20) The measures provided for in this Regulation are in accordance with the opinion of the European Securities Committee,
HAS ADOPTED THIS REGULATION:
CHAPTER I
SUBJECT MATTER AND GENERAL PRINCIPLES
Article 1
Subject matter
This Regulation lays down the detailed rules for the implementation of Articles 75(2), 78(2) to (5) and 81(1) of Directive 2009/65/EC.
Article 2
General principles
1. Requirements laid down in this Regulation shall apply to any management company with regard to each UCITS it manages.
2. This Regulation shall apply to any investment company which has not designated a management company authorised pursuant to Directive 2009/65/EC.
Article 3
Principles regarding the key investor information document
1. This Regulation specifies in an exhaustive manner the form and content of the document containing key investor information (hereinafter referred to as key investor information document). No other information or statements shall be included except where this Regulation states otherwise.
2. The key investor information shall be fair, clear and not misleading.
3. The key investor information document shall be provided in such a way as to ensure that investors are able to distinguish it from other material. In particular, it shall not be presented or delivered in a way that is likely to lead investors to consider it less important than other information about the UCITS and its risks and benefits.
CHAPTER II
FORM AND PRESENTATION OF KEY INVESTOR INFORMATION
SECTION 1
Title of document, order of contents and headings of sections
Article 4
Title and content of document
1. The content of the key investor information document shall be presented in the order as set out in paragraphs 2 to 13.
2. The title 'Key investor information' shall appear prominently at the top of the first page of the key investor information document.
3. An explanatory statement shall appear directly underneath the title. It shall read:
'This document provides you with key investor information about this fund. It is not marketing material. The information is required by law to help you understand the nature and the risks of investing in this fund. You are advised to read it so you can make an informed decision about whether to invest'.
4. The identification of the UCITS, including the share class or investment compartment thereof, shall be stated prominently. In the case of an investment compartment or share class, the name of the UCITS shall follow the compartment or share class name. Where a code number identifying the UCITS, investment compartment or share class exists, it shall form part of the identification of the UCITS.
5. The name of the management company shall be stated.
6. In addition, in cases where the management company forms part of a group of companies for legal, administrative or marketing purposes, the name of that group may be stated. Corporate branding may be included provided it does not hinder an investor in understanding the key elements of the investment or diminish his ability to compare investment products.
7. The section of the key investor information document entitled 'Objectives and investment policy' shall contain the information set out in Section 1 of Chapter III of this Regulation.
8. The section of the key investor information document entitled 'Risk and reward profile' shall contain the information set out in Section 2 of Chapter III of this Regulation.
9. The section of the key investor information document entitled 'Charges' shall contain the information set out in Section 3 of Chapter III of this Regulation.
10. The section of the key investor information document entitled 'Past performance' shall contain the information set out in Section 4 of Chapter III of this Regulation.
11. The section of the key investor information document entitled 'Practical information' shall contain the information set out in Section 5 of Chapter III of this Regulation.
12. Authorisation details shall consist of the following statement:
'This fund is authorised in [name of Member State] and regulated by [identity of competent authority]'.
In cases where the UCITS is managed by a management company exercising rights under Article 16 of Directive 2009/65/EC, an additional statement shall be included:
'[Name of management company] is authorised in [name of MemberState] and regulated by [identity of competent authority]'.
13. Information on publication shall consist of the following statement:
'This key investor information is accurate as at [the date of publication]'.
SECTION 2
Language, length and presentation
Article 5
Presentation and language
1. A key investor information document shall be:
(a) presented and laid out in a way that is easy to read, using characters of readable size;
(b) clearly expressed and written in language that communicates in a way that facilitates the investor's understanding of the information being communicated, in particular where:
(i) the language used is clear, succinct and comprehensible;
(ii) the use of jargon is avoided;
(iii) technical terms are avoided when everyday words can be used instead;
(c) focused on the key information that investors need.
2. Where colours are used, they shall not diminish the comprehensibility of the information in the event that the key investor information document is printed or photocopied in black and white.
3. Where the design of the corporate branding of the management company or the group to which it belongs is used, it shall not distract the investor or obscure the text.
Article 6
Length
The key investor information document shall not exceed two pages of A4-sized paper when printed.
CHAPTER III
CONTENT OF SECTIONS OF THE KEY INVESTOR INFORMATION DOCUMENT
SECTION 1
Objectives and investment policy
Article 7
Specific contents of the description
1. The description contained in the 'Objectives and investment policy' section of the key investor information document shall cover those essential features of the UCITS about which an investor should be informed, even if these features do not form part of the description of objectives and investment policy in the prospectus, including:
(a) the main categories of eligible financial instruments that are the object of investment;
(b) the possibility that the investor may redeem units of UCITS on demand, qualifying that statement with an indication as to the frequency of dealing in units;
(c) whether the UCITS has a particular target in relation to any industrial, geographic or other market sectors or specific classes of assets;
(d) whether the UCITS allows for discretionary choices in regards to the particular investments that are to be made, and whether this approach includes or implies a reference to a benchmark and if so, which one;
(e) whether dividend income is distributed or reinvested.
For the purposes of point (d), where a reference to a benchmark is implied, the degree of freedom available in relation to this benchmark shall be indicated, and where the UCITS has an index-tracking objective, this shall be stated.
2. The description referred to in paragraph 1 shall include the following information, so long as it is relevant:
(a) where the UCITS invests in debt securities, an indication of whether they are issued by corporate bodies, governments or other entities, and, if applicable, any minimum rating requirements;
(b) where the UCITS is a structured fund, an explanation in simple terms of all elements necessary for a correct understanding of the pay-off and the factors that are expected to determine performance, including references, if necessary, to the details on the algorithm and its workings which appear in the prospectus;
(c) where the choice of assets is guided by specific criteria, an explanation of those criteria, such as 'growth', 'value' or 'high dividends';
(d) where specific asset management techniques are used, which may include hedging, arbitrage or leverage, an explanation in simple terms of the factors that are expected to determine the performance of the UCITS;
(e) where the impact of portfolio transaction costs on returns is likely to be material due to the strategy adopted by the UCITS, a statement that this is the case, making it also clear that portfolio transaction costs are paid from the assets of the fund in addition to the charges set out in Section 3 of this Chapter;
(f) where a minimum recommended term for holding units in the UCITS is stated either in the prospectus or in any marketing documents, or where it is stated that a minimum holding period is an essential element of the investment strategy, a statement with the following wording:
'Recommendation: this fund may not be appropriate for investors who plan to withdraw their money within [period of time]'.
3. Information included under paragraphs 1 and 2 shall distinguish between the broad categories of investments as specified under paragraphs 1(a), (c) and 2(a) and the approach to these investments to be adopted by a management company as specified under paragraphs 1(d) and 2 (b), (c) and (d).
4. The 'Objectives and investment policy' section of the key investor information document may contain elements other than those listed in paragraph 2, including the description of the UCITS' investment strategy, where these elements are necessary to adequately describe the objectives and investment policy of the UCITS.
SECTION 2
Risk and reward profile
Article 8
Explanation of potential risks and rewards, including the use of an indicator
1. The 'Risk and reward profile' section of the key investor information document shall contain a synthetic indicator, supplemented by:
(a) a narrative explanation of the indicator and its main limitations;
(b) a narrative explanation of risks which are materially relevant to the UCITS and which are not adequately captured by the synthetic indicator.
2. The synthetic indicator referred to in paragraph 1 shall take the form of a series of categories on a numerical scale with the UCITS assigned to one of the categories. The presentation of the synthetic indicator shall comply with the requirements laid down in Annex I.
3. The computation of the synthetic indicator referred to in paragraph 1, as well as any of its subsequent revisions, shall be adequately documented.
Management companies shall keep records of these computations for a period of not less than five years. This period shall be extended to five years after maturity for the case of structured funds.
4. The narrative explanation referred to in paragraph 1(a) shall include the following information:
(a) a statement that historical data, such as is used in calculating the synthetic indicator, may not be a reliable indication of the future risk profile of the UCITS;
(b) a statement that the risk and reward category shown is not guaranteed to remain unchanged and that the categorisation of the UCITS may shift over time;
(c) a statement that the lowest category does not mean a risk-free investment;
(d) a brief explanation as to why the UCITS is in a specific category;
(e) details of the nature, timing and extent of any capital guarantee or protection offered by the UCITS, including the potential effects of redeeming units outside of the guaranteed or protected period.
5. The narrative explanation referred to in paragraph 1(b) shall include the following categories of risks, where these are material:
(a) credit risk, where a significant level of investment is made in debt securities;
(b) liquidity risk, where a significant level of investment is made in financial instruments, which are by their nature sufficiently liquid, yet which may under certain circumstances have a relatively low level of liquidity, so as to have an impact on the level of liquidity risk of the UCITS as a whole;
(c) counterparty risk, where a fund is backed by a guarantee from a third party, or where its investment exposure is obtained to a material degree through one or more contracts with a counterparty;
(d) operational risks and risks related to safekeeping of assets;
(e) impact of financial techniques as referred to in Article 50(1)(g) of Directive 2009/65/EC such as derivative contracts on the UCITS' risk profile where such techniques are used to obtain, increase or reduce exposure to underlying assets.
Article 9
Principles governing the identification, explanation and presentation of risks
The identification and explanation of risks referred to in Article 8(1)(b) shall be consistent with the internal process for identifying, measuring and monitoring risk adopted by the UCITS' management company as laid down in Directive 2010/43/EU. Where a management company manages more than one UCITS, the risks shall be identified and explained in a consistent fashion.
SECTION 3
Charges
Article 10
Presentation of charges
1. The 'Charges' section of the key investor information document shall contain a presentation of charges in the form of a table as laid down in Annex II.
2. The table referred to in paragraph 1 shall be completed in accordance with the following requirements:
(a) entry and exit charges shall each be the maximum percentage which might be deducted from the investor's capital commitment to the UCITS;
(b) a single figure shall be shown for charges taken from the UCITS over a year, to be known as the 'ongoing charges,' representing all annual charges and other payments taken from the assets of the UCITS over the defined period, and based on the figures for the preceding year;
(c) the table shall list and explain any charges taken from the UCITS under certain specific conditions, the basis on which the charge is calculated, and when the charge applies.
Article 11
Explanation of charges and a statement about the importance of charges
1. The 'Charges' section shall contain a narrative explanation of each of the charges specified in the table including the following information:
(a) with regard to entry and exit charges:
(i) it shall be made clear that the charges are always maximum figures, as in some cases the investor might pay less;
(ii) a statement shall be included stating that the investor can find out the actual entry and exit charges from their financial adviser or distributor;
(b) with regard to 'ongoing charges', there shall be a statement that the ongoing charges figure is based on the last year's expenses, for the year ending [month/year], and that this figure may vary from year to year where this is the case.
2. The 'Charges' section shall contain a statement about the importance of charges which shall make clear that the charges an investor pays are used to pay the costs of running the UCITS, including the costs of marketing and distributing the UCITS, and that these charges reduce the potential growth of the investment.
Article 12
Additional requirements
1. All of the elements of the charging structure shall be presented as clearly as possible to allow investors to consider the combined impact of the charges.
2. Where the impact of portfolio transaction costs on returns is likely to be material due to the strategy adopted by the UCITS, this shall be stated within the 'Objectives and investment policy' section, as indicated in Article 7(2)(e).
3. Performance fees shall be disclosed in accordance with Article 10(2)(c). The amount of the performance fee charged during the UCITS' last financial year shall be included as a percentage figure.
Article 13
Specific cases
1. Where a new UCITS cannot comply with the requirements contained in Article 10(2)(b) and Article 11(1)(b), the ongoing charges shall be estimated, based on the expected total of charges.
2. Paragraph 1 shall not apply in the following cases:
(a) for funds which charge a fixed all-inclusive fee, where instead that figure shall be displayed;
(b) for funds which set a cap or maximum on the amount that can be charged, where instead that figure shall be disclosed so long as the management company gives a commitment to respect the published figure and to absorb any costs that would otherwise cause it to be exceeded.
Article 14
Cross-referencing
The 'Charges' section shall include, where relevant, a cross-reference to those parts of the UCITS prospectus where more detailed information on charges can be found, including information on performance fees and how they are calculated.
SECTION 4
Past performance
Article 15
Presentation of past performance
1. The information about the past performance of the UCITS shall be presented in a bar chart covering the performance of the UCITS for the last 10 years.
The size of the bar chart referred to in the first subparagraph shall allow for legibility, but shall under no circumstances exceed half a page in the key investor information document.
2. UCITS with performance of less than 5 complete calendar years shall use a presentation covering the last 5 years only.
3. For any years for which data is not available, the year shall be shown as blank with no annotation other than the date.
4. For a UCITS which does not yet have performance data for one complete calendar year, a statement shall be included explaining that there is insufficient data to provide a useful indication of past performance to investors.
5. The bar chart layout shall be supplemented by statements which appear prominently and which:
(a) warn about its limited value as a guide to future performance;
(b) indicate briefly which charges and fees have been included or excluded from the calculation of past performance;
(c) indicate the year in which the fund came into existence;
(d) indicate the currency in which past performance has been calculated.
The requirement laid down in point (b) shall not apply to UCITS which do not have entry or exit charges.
6. A key investor information document shall not contain any record of past performance for any part of the current calendar year.
Article 16
Past performance calculation methodology
The calculation of past performance figures shall be based on the net asset value of the UCITS, and they shall be calculated on the basis that any distributable income of the fund has been reinvested.
Article 17
Impact and treatment of material changes
1. Where a material change occurs to a UCITS' objectives and investment policy during the period displayed in the bar chart referred to in Article 15, the UCITS' past performance prior to that material change shall continue to be shown.
2. The period prior to the material change referred to in paragraph 1 shall be indicated on the bar chart and labelled with a clear warning that the performance was achieved under circumstances that no longer apply.
Article 18
Use of a benchmark alongside the past performance
1. Where the 'Objectives and investment policy' section of the key investor information document makes reference to a benchmark, a bar showing the performance of that benchmark shall be included in the chart alongside each bar showing the UCITS' past performance.
2. For UCITS which do not have past performance data over the required five or 10 years, the benchmark shall not be shown for years in which the UCITS did not exist.
Article 19
Use of 'simulated' data for past performance
1. A simulated performance record for the period before data was available shall only be permitted in the following cases, provided that its use is fair, clear and not misleading:
(a) a new share class of an existing UCITS or investment compartment may simulate its performance by taking the performance of another class, provided the two classes do not differ materially in the extent of their participation in the assets of the UCITS;
(b) a feeder UCITS may simulate its performance by taking the performance of its master UCITS, provided that one of the following conditions are met:
(i) the feeder's strategy and objectives do not allow it to hold assets other than units of the master and ancillary liquid assets;
(ii) the feeder's characteristics do not differ materially from those of the master.
2. In all cases where performance has been simulated in accordance with paragraph 1, there shall be prominent disclosure on the bar chart that the performance has been simulated.
3. A UCITS changing its legal status but remaining established in the same Member State shall retain its performance record only where the competent authority of the Member State reasonably assesses that the change of status would not impact the UCITS' performance.
4. In the case of mergers referred to in Article 2(1)(p)(i) and (iii) of Directive 2009/65/EC, only the past performance of the receiving UCITS shall be maintained in the key investor information document.
SECTION 5
Practical information and cross-references
Article 20
Content of 'practical information' section
1. The 'Practical information' section of the key investor information document shall contain the following information relevant to investors in every Member State in which the UCITS is marketed:
(a) the name of the depositary;
(b) where and how to obtain further information about the UCITS, copies of its prospectus and its latest annual report and any subsequent half-yearly report, stating in which language(s) those documents are available, and that they may be obtained free of charge;
(c) where and how to obtain other practical information, including where to find the latest prices of units;
(d) a statement that the tax legislation of the UCITS' home Member State may have an impact on the personal tax position of the investor;
(e) the following statement:
'[Insert name of investment company or management company] may beheld liable solely on the basis of any statement contained in this document that is misleading, inaccurate or inconsistent with the relevant parts of the prospectus for the UCITS.'
2. Where the key investor information document is prepared for a UCITS investment compartment, the 'Practical information' section shall include the information specified in Article 25(2) including on investors' rights to switch between compartments.
3. Where applicable, the 'Practical information' section of the key investor information document shall state the information required about available share classes in accordance with Article 26.
Article 21
Use of cross-references to other sources of information
1. Cross-references to other sources of information, including the prospectus and annual or half-yearly reports, may be included in the key investor information document, provided that all information fundamental to the investors' understanding of the essential elements of the investment is included in the key investor information document itself.
Cross-references shall be permitted to the website of the UCITS or the management company, including a part of any such website containing the prospectus and the periodic reports.
2. Cross-references referred to in paragraph 1 shall direct the investor to the specific section of the relevant source of information. Several different cross-references may be used within the key investor information document but they shall be kept to a minimum.
SECTION 6
Review and revision of the key investor information document
Article 22
Review of key investor information
1. A management company or investment company shall ensure that a review of key investor information is carried out at least every twelve months.
2. A review shall be carried out prior to any proposed change to the prospectus, the fund rules or the instrument of incorporation of the investment company where these changes were not subject to review as referred to in paragraph 1.
3. A review shall be carried out prior to or following any changes regarded as material to the information contained in the key investor information document.
Article 23
Publication of the revised version
1. Where a review referred to in Article 22 indicates that changes need to be made to the key investor information document, its revised version shall be made available promptly.
2. Where a change to the key investor information document was the expected result of a decision by the management company, including changes to the prospectus, fund rules or the instrument of incorporation of the investment company, the revised version of the key investor information document shall be made available before the change comes into effect.
3. A key investor information document with duly revised presentation of past performance of the UCITS shall be made available no later than 35 business days after 31 December each year.
Article 24
Material changes to the charging structure
1. The information on charges shall properly reflect any change to the charging structure that results in an increase in the maximum permitted amount of any one-off charge payable directly by the investor.
2. Where the 'ongoing charges' calculated in accordance with Article 10(2)(b) are no longer reliable, the management company shall instead estimate a figure for 'ongoing charges' that it believes on reasonable grounds to be indicative of the amount likely to be charged to the UCITS in future.
This change of basis shall be disclosed through the following statement:
'The ongoing charges figure shown here is an estimate of the charges. [Insert short description of why an estimate is being used rather than an ex-post figure.] The UCITS' annual report for each financial year will include detail on the exact charges made.'
CHAPTER IV
PARTICULAR UCITS STRUCTURES
SECTION 1
Investment compartments
Article 25
Investment compartments
1. Where a UCITS consists of two or more investment compartments a separate key investor information document shall be produced for each individual compartment.
2. Each key investor information document referred to in paragraph 1 shall indicate within the 'practical information' section the following information:
(a) that the key investor information document describes a compartment of a UCITS, and, if it is the case, that the prospectus and periodic reports are prepared for the entire UCITS named at the beginning of the key investor information document;
(b) whether or not the assets and liabilities of each compartment are segregated by law and how this might affect the investor;
(c) whether or not the investor has the right to exchange his investment in units in one compartment for units in another compartment, and if so, where to obtain information about how to exercise that right.
3. Where the management company sets a charge for the investor to exchange his investment in accordance with paragraph 2(c), and that charge differs from the standard charge for buying or selling units, that charge shall be stated separately in the 'Charges' section of the key investor information document.
SECTION 2
Share classes
Article 26
Key investor information document for share classes
1. Where a UCITS consists of more than one class of units or shares, the key investor information document shall be prepared for each class of units or shares.
2. The key investor information pertinent to two or more classes of the same UCITS may be combined into a single key investor information document, provided that the resulting document fully complies with all requirements as laid down in Section 2 of Chapter II, including as to length.
3. The management company may select a class to represent one or more other classes of the UCITS, provided the choice is fair, clear and not misleading to potential investors in those other classes. In such cases the 'Risk and reward profile' section of the key investor information document shall contain the explanation of material risk applicable to any of the other classes being represented. A key investor information document based on the representative class may be provided to investors in the other classes.
4. Different classes shall not be combined into a composite representative class as referred to in paragraph 3.
5. The management company shall keep a record of which other classes are represented by the representative class referred to in paragraph 3 and the grounds justifying that choice.
Article 27
Practical information section
If applicable, the 'Practical information' section of the key investor information document shall be supplemented by an indication of which class has been selected as representative, using the term by which it is designated in the UCITS' prospectus.
That section shall also indicate where investors can obtain information about the other classes of the UCITS that are marketed in their own Member State.
SECTION 3
Fund of funds
Article 28
Objectives and investment policy section
Where the UCITS invests a substantial proportion of its assets in other UCITS or other collective investment undertakings as referred to in Article 50(1)(e) of Directive 2009/65/EC, the description of the objectives and investment policy of that UCITS in the key investor information document shall include a brief explanation of how the other collective undertakings are to be selected on an ongoing basis.
Article 29
Risk and reward profile
The narrative explanation of risk factors referred to in Article 8(1)(b) shall take account of the risks posed by each underlying collective undertaking, to the extent that these are likely to be material to the UCITS as a whole.
Article 30
Charges section
The description of the charges shall take account of any charges that that UCITS will itself incur as an investor in the underlying collective undertakings. Specifically, any entry and exit charges and ongoing charges levied by the underlying collective undertakings shall be reflected in the UCITS' calculation of its own ongoing charges figure.
SECTION 4
Feeder UCITS
Article 31
Objectives and investment policy section
1. The key investor information document for a feeder UCITS, as defined in Article 58 of Directive 2009/65/EC, shall contain, in the description of objectives and investment policy, information about the proportion of the feeder UCITS' assets which is invested in the master UCITS.
2. There shall also be a description of the master UCITS' objectives and investment policy, supplemented as appropriate by either of the following:
(i) an indication that the feeder UCITS' investment returns will be very similar to those of the master UCITS; or
(ii) an explanation of how and why the investment returns of the feeder and master UCITS may differ.
Article 32
Risk and reward profile section
1. Where the risk and reward profile of the feeder UCITS differs in any material respect from that of the master, this fact and the reason for it shall be explained in the 'Risk and reward profile' section of the key investor information document.
2. Any liquidity risk and the relationship between purchase and redemption arrangements for the master and feeder UCITS shall be explained in the 'Risk and reward profile' section of the key investor information document.
Article 33
Charges section
The 'Charges' section of the key investor information document shall cover both the costs of investing in the feeder UCITS and any costs and expenses that the master UCITS may charge to the feeder UCITS.
In addition, it shall combine the costs of both the feeder and the master UCITS in the ongoing charges figure for the feeder UCITS.
Article 34
Practical information section
1. The key investor information document for a feeder UCITS shall contain in the 'Practical information' section information specific to the feeder UCITS.
2. The information referred to in paragraph 1 shall include:
(a) a statement that the master UCITS' prospectus, key investor information document, and periodic reports and accounts are available to investors of the feeder UCITS upon request, how they may be obtained, and in which language(s);
(b) whether the items listed in point (a) are available in paper copies only or in other durable media, and whether any fee is payable for items not subject to free delivery in accordance with Article 63(5) of Directive 2009/65/EC;
(c) where the master UCITS is established in a different Member State to the feeder UCITS, and this may affect the feeder's tax treatment, a statement to this effect.
Article 35
Past performance
1. The past performance presentation in the key investor information document of the feeder UCITS shall be specific to the feeder UCITS, and shall not reproduce the performance record of the master UCITS.
2. Paragraph 1 shall not apply:
(a) where a feeder UCITS shows the past performance of its master UCITS as a benchmark; or
(b) where the feeder was launched as a feeder UCITS at a later date than the master UCITS, and where the conditions of Article 19 are satisfied, and where a simulated performance is shown for the years before the feeder existed, based on the past performance of the master UCITS; or
(c) where the feeder UCITS has a past performance record from before the date on which it began to operate as a feeder, its own record being retained in the bar chart for the relevant years, with the material change labelled as required by Article 17(2).
SECTION 5
Structured UCITS
Article 36
Performance scenarios
1. The key investor information document for structured UCITS shall not contain the 'Past performance' section.
For the purposes of this Section, structured UCITS shall be understood as UCITS which provide investors, at certain predetermined dates, with algorithm-based payoffs that are linked to the performance, or to the realisation of price changes or other conditions, of financial assets, indices or reference portfolios or UCITS with similar features.
2. For structured UCITS, the 'Objectives and investment policy' section of the key investor information document shall include an explanation of how the formula works or how the pay-off is calculated.
3. The explanation referred to in paragraph 2 shall be accompanied by an illustration, showing at least three scenarios of the UCITS' potential performance. Appropriate scenarios shall be chosen to show the circumstances in which the formula may generate a low, a medium or a high return, including, where applicable, a negative return for the investor.
4. The scenarios referred to in paragraph 3 shall enable the investor to understand fully all the effects of the calculation mechanism embedded in the formula.
They shall be presented in a way that is fair, clear and not misleading, and that is likely to be understood by the average retail investor. In particular, they shall not artificially magnify the importance of the final performance of the UCITS.
5. The scenarios referred to in paragraph 3 shall be based on reasonable and conservative assumptions about future market conditions and price movements.
However, whenever the formula exposes investors to the possibility of substantial losses, such as a capital guarantee that functions only under certain circumstances, these losses shall be appropriately illustrated, even if the probability of the corresponding market conditions is low.
6. The scenarios referred to in paragraph 3 shall be accompanied by a statement that they are examples that are included to illustrate the formula, and do not represent a forecast of what might happen. It shall be made clear that the scenarios shown may not have an equal probability of occurrence.
Article 37
Length
The key investor information document for structured UCITS shall not exceed three pages of A4-sized paper when printed.
CHAPTER V
DURABLE MEDIUM
Article 38
Conditions applying to the provision of a key investor information document or a prospectus in a durable medium other than paper or by means of a website
1. Where, for the purposes of Directive 2009/65/EC, the key investor information document or prospectus is to be provided to investors using a durable medium other than paper the following conditions shall be met:
(a) the provision of the key investor information document or the prospectus using such a durable medium is appropriate to the context in which the business between the management company and the investor is, or is to be, carried on; and
(b) the person to whom the key investor information document or the prospectus is to be provided, when offered the choice between information on paper or in that other durable medium, specifically chooses that other medium.
2. Where the key investor information document or the prospectus is to be provided by means of a website and that information is not addressed personally to the investor, the following conditions shall also be satisfied:
(a) the provision of that information in that medium is appropriate to the context in which the business between the management company and the investor is, or is to be, carried on;
(b) the investor must specifically consent to the provision of that information in that form;
(c) the investor must be notified electronically of the address of the website, and the place on the website where the information may be accessed;
(d) the information must be up to date;
(e) the information must be accessible continuously by means of that website for such period of time as the client may reasonably need to inspect it.
3. For the purposes of this Article, the provision of information by means of electronic communications shall be treated as appropriate to the context in which the business between the management company and the investor is, or is to be, carried on if there is evidence that the investor has regular access to the Internet. The provision by the investor of an e-mail address for the purposes of the carrying on of that business shall be treated as such evidence.
CHAPTER VI
FINAL PROVISIONS
Article 39
Entry into force
1. This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union.
2. This Regulation shall apply from 1 July 2011.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 1 July 2010.
For the Commission
The President
José Manuel BARROSOL
ANNEX I
REQUIREMENTS RELATED TO THE PRESENTATION OF THE SYNTHETIC INDICATOR
1. The synthetic indicator shall rank the fund on a scale from 1 to 7 on the basis of its volatility record.
2. The scale shall be shown as a sequence of categories denoted by the whole numbers in ascending order from 1 to 7 running from left to right, representing levels of risk and reward, from lowest to highest.
3. It shall be made clear on the scale that lower risk entails potentially lower reward and that higher risk entails potentially higher rewards.
4. The category into which the UCITS falls shall be prominently indicated.
5. No colours shall be used for distinguishing between items on the scale.
ANNEX II
PRESENTATION OF CHARGES
The charges shall be presented in a table structured in the following way: One-off charges taken before or after you invest | |
Entry charge
Exit charge | [ ] % [ ] % |
This is the maximum that might be taken out of your money [before it is invested] [before the proceeds of your investment are paid out] | |
Charges taken from the fund over a year | |
Ongoing charge | [ ] % |
Charges taken from the fund under certain specific conditions | |
Performance fee | [ ] % a year of any returns the fund achieves above the benchmark for these fees, the [insert name of benchmark] |
- In the case of a performance fee, the amount charged in the fund's last financial year shall be included as a percentage figure.
ANNEX III
PRESENTATION OF THE PAST PERFORMANCE INFORMATION
The bar chart presenting past performance shall comply with the following criteria:
1. the scale of the Y-axis of the bar chart shall be linear, not logarithmic;
2. the scale shall be adapted to the span of the bars shown and shall not compress the bars so as to make fluctuations in returns hard to distinguish;
3. the X-axis shall be set at the level of 0% performance;
4. a label shall be added to each bar indicating the return in percentage that was achieved;
5. past performance figures shall be rounded to one decimal place.
- 01/07/2011
Transitional Provisions and Schedules
COLL TP 1
Transitional Provisions
(1) | (2) Material to which the transitional provision applies | (3) | (4) Transitional provision | (5) Transitional provision: dates in force | (6) Handbook provision: coming into force |
Extra time provisions | |||||
Existing schemes electing to comply with COLL | |||||
1 | [deleted] | [deleted] | [deleted] | Expired | [deleted] |
1A | Each and every rule in COLL | R | The rules in COLL do not apply to any relevant party in relation to an authorised fund where the winding up of the fund has commenced before 12 February 2007, provided that each relevant party shall continue to comply with the provisions of CIS as if they still applied to them. | From 12 February 2007 | 12 February 2007 |
2 | [deleted] | [deleted] | [deleted] | Expired | |
[deleted] | |||||
3 | [deleted] | [deleted] | Expired | [deleted] | |
[deleted] | |||||
4 | [deleted] | G | [deleted] | Expired | |
[deleted] | |||||
5 | [deleted] | [deleted] | Expired | [deleted] | |
.[deleted] | |||||
6 | [deleted] | [deleted] | [deleted] | Expired | |
[deleted] | |||||
7 | [deleted] | [deleted] | [deleted] | Expired | [deleted] |
[deleted] | |||||
8 | [deleted] | [deleted] | Expired | [deleted] | |
[deleted] | |||||
9 | [deleted] | [deleted] | [deleted] | Expired | |
10 | [deleted] | [deleted] | [deleted | Expired | [deleted] |
Definition of relevant party | |||||
11 | [deleted] | [deleted] | Expired | [deleted] | |
[deleted] | |||||
12 | Expired | ||||
13 | [deleted] | [deleted] | [deleted] | Expired | [deleted] |
14 | Amendments to COLL made by the Collective Investment Schemes Sourcebook (UCITS Eligible Assets Directive and Other Amendments) Instrument 2008 | R | (1) The authorised fund manager of an authorised fund may elect for early compliance with the instrument, in which case COLL applies as if it had been amended by the instrument. | Expired | [deleted] |
(2) An election is irrevocable and does not take effect until the authorised fund manager notifies the depositary and the FSA in writing of the date it takes effect. | Expired | ||||
(3) The authorised fund manager must make a record of the election and retain it for a period of six years from the date it takes effect. | From 6 March 2008 until 6 years from the date the relevant election took effect | ||||
15 | Amendments to COLL 5.6.3 R made by the Collective Investment Schemes Sourcebook (Amendment No 5) Instrument 2009 | R | The new timing provisions in relation to the prudent spread of risk will not take effect until 6 January 2011 in relation to those non-UCITS retail schemes authorised as an AUT or an ICVC prior to 6 January 2010. | 6 January 2010 to 5 January 2011 | 6 January 2010 |
16 | COLL 4.5 and COLL 8.3.5 R to COLL 8.3.5E R | R | In relation to the preparation of any report pursuant to COLL 4.5 or COLL 8.3.5 R to COLL 8.3.5E R for the last annual accounting period or half-yearly accounting period ending before 6 March 2010, the authorised fund manager, depositary and auditor may together elect to comply with those rules as they were in force on 5 March 2010. The authorised fund manager must make a record of any such election and retain it for a period of six years from the date on which that record is made. | From 6 March 2010 to 5 July 2010 | 6 March 2010 |
17 | COLL 4.5.5R (1)(a)(iv) and COLL 4.5.9R (9A) | R | An authorised fund manager need not include in the short report or long report for a UCITS scheme the figure for the synthetic risk and reward indicator that would have been disclosed in its most recent key investor information document provided that, as at the accounting reference date to which the report relates, marketing of units in the scheme is being done on the basis of a simplified prospectus meeting the requirements of the Handbook. | From 1 July 2011 to 31 October 2012 | 1 July 2011 |
[Note: article 118(2) of the UCITS Directive] | |||||
18 | Each and every rule in COLL that relates to key investor information | R | (1) This rule applies to: (a) an authorised fund manager of a UCITS scheme; and (b) an ICVC which is a UCITS scheme and any other director of that ICVC; | From 1 July 2011 to 30 June 2012 | 1 July 2011 |
where the authorisation order for the scheme was made before 1 July 2011 and for this purpose, where this transitional provision is being applied in relation to an existing umbrella as at 1 July 2011 and an authorisation order is made for a new sub-fund of the umbrella after that date, this transitional provision shall also be applied to that sub-fund. | |||||
(2) A person in (1) need not comply with any rule in COLL that relates to key investor information provided it continues to produce, publish, provide, and meet all other applicable regulatory requirements in relation to, a simplified prospectus for the UCITS scheme as set out in COLL 4.2.3B R (Simplified Prospectus provisions) (as it stands at 30 June 2011), and all references in any rule in COLL to key investor information should be read as references to the simplified prospectus. | From 1 July 2011 to 30 June 2012 | 1 July 2011 | |||
(3) A person in (1) that makes use of this provision from 1 July 2011 may cease to do so in respect of the UCITS scheme or any sub-fund of the scheme at any time before [30 June 2012], but having done so, may not, in relation to that scheme or sub-fund, make use subsequently of this provision in respect of any rules or guidance in COLL. | |||||
(4) A person in (1) that makes use of this provision in accordance with (2) in relation to a UCITS scheme or sub-fund of the scheme, or that ceases to do so in accordance with (3), must do so in respect of all classes of units in issue in that scheme or sub-fund, whether the units of any such class were first issued before, on or after 1 July 2011. | |||||
[Note: article 118(2) of the UCITS Directive] | |||||
19 |
COLL 4.4.12 R
COLL 4.4.13 R COLL 7.7.19 R | R | Where a UCITS scheme is to be the receiving UCITS in a proposed UCITS merger and no meeting of unitholders is required to be held under COLL 7.6.2 R (5) and COLL 7.6.2 R (6), the authorised fund manager may satisfy its duty to the unitholders of the receiving UCITS under COLL 7.7.19 R (Method of providing merger information to unitholders) to provide the information by making it public in an appropriate manner. | From 1 July 2011 to 31 December 2013 | 1 July 2011 |
20 | COLL 4.4.12 R COLL 4.4.13 R COLL 7.7.19 R | G | (1) In determining the appropriate manner of making the information public, the authorised fund manager should ensure that: (a) a unitholder can obtain the information at a reasonable cost; (b) the information is available at reasonable times; (c) publication is consistent with the manner in which the authorised fund manager makes other types of information about the scheme public, so that it is reasonably likely to come to the attention of unitholders. | From 1 July 2011 to 31 December 2013 | 1 July 2011 |
(2) Examples of what might be deemed appropriate include one or more of: (a) publication in a national newspaper; (b) supply through an advertised local rate or freephone telephone number; (c) publication on the internet; or (d) communication to all existing unitholders, before the merger has taken effect. | |||||
(3) In addition to the methods of publication in (2), the authorised fund manager should consider publishing appropriate information about the merger in the next long report of the scheme. This might include an updated explanation of the matters set out in COLL 7.7.14 R (1) (Specific rules regarding the content of merger information to be provided to unitholders of the receiving UCITS). | |||||
21 | COLL 4.2.5R (3)(qa) | R | Where a scheme meets the conditions in COLL 5.9.3 R (Investment conditions: short-term money market funds) or COLL 5.9.5 R (Investment conditions: money market funds) on 30 June 2011 an authorised fund manager need not include the statement in COLL 4.2.5R (3)(qa). | 1 July 2011 to 31 December 2011 | 1 July 2011 |
22 | COLL 4.6.8R(8)(d) | R | Where a scheme meets the conditions in COLL 5.9.3 R or COLL 5.9.5 R on 30 June 2011 an authorised fund manager need not include the statement in COLL 4.6.8R(8)(d). | 1 July 2011 to 31 December 2011 | 1 July 2011 |
23 | COLL 5.9.3 R and COLL 5.9.5 R | R | The conditions in COLL 5.9.3 RC and COLL 5.9.5 R that a money market fund or a short-term money market fund must satisfy do not apply to investments acquired prior to 1 July 2011. | 1 July 2011 to 31 December 2011 | 1 July 2011 |
24 | COLL 8.3.4R (6) | R | Where a scheme meets the conditions in COLL 5.9.3 R or COLL 5.9.5 R on 30 June 2011 an authorised fund manager need not include the statement in COLL 8.3.4R(6). | 1 July 2011 to 31 December 2011 | 1 July 2011 |
25 | COLL 3 to COLL 8 | R | (1) The following chapters and provisions of COLL apply as if the amendments made to those chapters and provisions by the Collective Investment Schemes Sourcebook (ICVC Sub-funds) Instrument 2011 had not been made in respect of an ICVC in the circumstances specified under (2): (a) COLL 3; (b) COLL 4; (c) COLL 5; (d) COLL 6; (e) COLL 7 (except COLL 7.3.3 G and COLL 7.3.7 R (9)); and (f) COLL 8. (2) The chapters and provisions referred to in (1) apply as described in respect of an ICVC until the date on which either: (a) the instrument of incorporation is amended to contain a statement to effect compliance with paragraph 2(ba) of Schedule 2 to the OEIC Regulations; or (b) an authorisation order is given to an ICVC which contains in its instrument of incorporation the statement to effect compliance with paragraph 2(ba) of Schedule 2 to the OEIC Regulations. | From 21 December 2011 to 20 December 2014 | 21 December 2011 |
26 | COLL 3 to COLL 8 | D | In respect of an ICVC which is amending its instrument of incorporation under COLL TP 1.1R(25)(2)(a), the FSA must be provided with the notification required by regulation 4(9) of the Open-Ended Investment Companies (Amendment) Regulations 2011 in writing. That notification must consist of a statement confirming that the umbrella does not have any agreements or contracts with a third party the provisions of which are inconsistent with paragraph (1) or (2) of regulation 11A of the OEIC Regulations. The notification must be provided at the same time as providing the notification required by regulation 21 of the OEIC Regulations. | From 21 December 2011 to 20 December 2014 | 21 December 2011 |
27 | COLL 3 to COLL 8 | G | Prior to amending the instrument of incorporation as set out in COLLTP1.1R(25)(2)(a), regulation 4(9) of the Open-Ended Investment Companies (Amendment) Regulations 2011 requires notification to be provided to the FSA in such form as the FSA may direct. The form in which the FSA directs this notification is to be provided is set out in TP1.1D(26). | From 21 December 2011 to 20 December 2014 | 21 December 2011 |
- 21/12/2011
- Past version of COLL TP 1 before 21/12/2011
COLL Sch 1
Record keeping requirements
- 01/12/2004
COLL Sch 1.1
See Notes
Handbook reference | Subject of record | Contents of record | When record must be made | Retention period |
COLL Transitional Provision 3 | Election or revocation to comply with CIS | Details | At election or revocation | 6 years |
COLL Transitional Provision 14 | Election for early compliance with the instrument | Details | At election | 6 years |
COLL 4.4.11 R (5) | Minutes of meetings (AFM) | Full details | As implicit from the rules in COLL | As implicit from the rules in COLL |
COLL 6.2.5 R (1) | Issues and cancellations of units (AFM) | Full details | As implicit from the rules in COLL | As implicit from the rules in COLL |
COLL 6.4.6 R (4) | Instruments of Transfer (person responsible for the register) | Full details | From registration | 6 years |
COLL 6.6.6 R (1) | General record- keeping obligations (AFM) | Such as to demonstrate compliance with the rules in COLL | As implicit from the rules in COLL | 6 years |
COLL 6.6.6 R (2) | Units held, acquired or disposed of (AFM) | Daily record of units held, acquired or disposed of by the AFM | As implicit in rules in COLL | 6 years |
COLL 6.6.6 R (3) | Dilution record- keeping obligations (AFM) | How the AFM calculates and estimates dilution and its policy and method for determining the amount of any dilution levy or dilution adjustment | As implicit from the rules in COLL | 6 years |
COLL 6.6.12 R (3) | General record-keeping obligations (depositary) | Such as to demonstrate compliance with the rules in COLL | As implicit from the rules in COLL | 6 years |
COLL 6.13.2 R | Portfolio transactions relating to a UCITS | Full details | After transaction | 5 years |
COLL 6.13.3 R | Subscription and redemption orders | Full details | After receipt of order | 5 years |
COLL 6.13.4 R | Records referred to in COLL 6.13.2 R and COLL 6.13.3 R | Full details | After termination of authorisation of UCITS management company | Outstanding term of 5 year period |
COLL 8.3.8 R (2) | Minutes of meetings (AFM) | Full details | As implicit from the rules in COLL | 6 years |
COLL 8.5.2 R (3)(e) | General record keeping obligations (AFM) | Full details | As implicit from the rules in COLL | As implicit from the rules in COLL |
COLL 8.5.2 R (3)(f) | Units held, acquired or disposed of (AFM) | Daily record of units held, acquired or disposed of by the AFM | As implicit from the rules in COLL | 6 years |
COLL 8.5.4 R (2)(h) | General record keeping obligation (depositary) | Full details | As implicit from the rules in COLL | As implicit from the rules in COLL |
COLL 8.5.10 R (4) | Issues and cancellations of units (AFM) | Full details | As implicit from the rules in COLL | As implicit from the rules in COLL |
COLL TP 1.1.16 | Election to comply with COLL 4.5 or COLL 8.3.5 R to COLL 8.3.5D R as those rules were in force on 5 March 2010 | Details | At election | 6 years |
COLL Sch 2
Notification requirements
- 01/12/2004
COLL Sch 2.1
See Notes
This schedule sets out the notification requirements detailed in COLL in respect only of notifications to be provided to the FSA. These notification requirements, it should be noted, are in addition to the notifications which must be made to the FSA under section 251 of the Act (Alteration of schemes and changes of manager or trustee) and under regulation 21 of the OEIC Regulations (The Authority's approval for certain changes in respect of a company). |
- 01/12/2004
COLL Sch 2.2
See Notes
Handbook reference | Matter to be notified | Contents of notification | Trigger event | Time allowed |
COLL Transitional provision 3 | Election or revocation to comply with CIS | Details and the date from which it is to take effect | At election or revocation | Immediate |
COLL Transitional Provision 14 | Election for early compliance with the instrument | Details and the date from which it is to take effect | At election | Immediate |
COLL 4.2.3 R (1)(b) | Prospectus and any revisions thereto | Copy provided | Marketing scheme | Before marketing begins |
COLL 4.2.3A R (1)(b) | Copy of prospectus of the master UCITS | Full details, together with any amendments | On publication | Immediately on publication |
COLL 4.2.3B R (1) | Prospectus of the qualifying master scheme of a feeder NURS | Copy provided | Upon request by the FSA | Immediate |
COLL 4.5.14 R (2)(d) | Annual and half yearly reports | Copy of report | End of annual or half-yearly accounting period | Immediately on publication |
COLL 4.5.15 R (1)(b) | Copies of the annual and half-yearly long reports of the master UCITS | Full details | End of annual or half-yearly accounting period | Immediately on publication |
COLL 4.5.16 R (1) | Annual and half-yearly long report (or nearest equivalent documents for a qualifying master scheme that is a recognised scheme) of the qualifying master scheme of a feeder NURS | Copy provided | Upon request by the FSA | Immediate |
COLL 4.7.7 R (2)) | Key investor information document | Full details, together with any amendments | On first use | Immediate |
COLL 4.7.7 R (3) | Key investor information document of the master UCITS | Full details, together with any amendments | On first use | Immediate |
COLL 6.5.3 R (5) | Change of ACD, directors or controller of ACD or a corporate director | Details | Occurrence | Immediate |
COLL 6.6.7 R | Capital of ICVC | Details if capital: (a) falls below minimum or(b) exceeds maximum | Occurrence | Immediate |
COLL 6.9.11 R | Change to ICVC or to one of its officers | Details | Occurrence | 14 days |
COLL 6.12.3 R | Risk management process | Details in COLL 6.12.3 R (2)(a) and COLL 6.12.3 R (2)(b) and any material alterations thereof | On first use of process | On a regular basis and at least annually |
COLL 6.12.6R(2) | Material change to the risk management process | Full details of change | On first use of amended process | Immediate |
COLL 7.2.1 R (2) & COLL 7.2.1R (5) | Suspension or resumption of dealing | Details including reason for suspension | Occurrence | Immediate |
COLL 7.3.5 R (5) | Winding up a solvent ICVC or terminating a solvent ICVC sub-fund (Directors) | Solvency statement | Winding up a solvent ICVC or ICVC sub-fund | Within 21 days of notice given under regulation 21 of OEIC Regulations |
COLL 7.3.7 R (9) | Winding up a solvent ICVC or sub-fund of an ICVC (Depositary) | Completion of winding up or termination of a sub-fund | Winding up a solvent ICVC or ICVC sub-fund | As soon as reasonably practical after winding up completed |
COLL 7.3.8 R (6) | Winding up a solvent ICVC (ACD) | Final accounts | Completion of winding up | Four months |
COLL 7.3.8 R (6) | Winding up a solvent ICVC sub-fund (ACD) | Termination account and auditor's report | Termination of sub-fund | Four months |
COLL 7.4.4R (6) | Winding up of an AUT or an AUT sub-fund (Trustee) | Completion of winding up | Winding up of an AUT | Immediate |
COLL 7.4.5 R (5) | Winding up an AUT or AUT sub-fund | Annual reports of the manager and trustee | End of final accounting period | Four months |
COLL 7.7.22 R | Confirmation of the completion of the merger transfer | Details of completion | On completion of transfer | Immediate |
COLL 8.3.2 R | Prospectus and revisions | Full documents | Before marketing commences | Immediate |
COLL 8.3.5 R (6) | Annual and half yearly reports | Copy of report | End of annual or half-yearly accounting period | Immediately on publication |
COLL 8.6.3 R (3) & COLL 8.6.3 R (5) | Suspension or resumption of dealing (AFM) | Details including reason for suspension | Occurrence | Immediate |
COLL 9.3.1 D | Notification of a scheme constituted in a designated territory | Prescribed details | Intention to market scheme in UK | As implicit from rules in COLL |
COLL 9.3.1 D | Application under section 272 of the Act | Details | Intention to market scheme in the UK | Up to 6 months before commencing marketing |
COLL 11.3.9 R | Identity of investing feeder UCITS | Full details | After investment | Immediate |
COLL 11.4.3 R | Notification of irregularities relating to a master UCITS | Full details | Detection | Immediate |
COLL Sch 3
Fees and other required payments
- 01/12/2004
COLL Sch 3.1
See Notes
COLL Sch 3.2
See Notes
COLL Sch 4
Powers exercised
- 01/12/2004
COLL Sch 4.1
See Notes
The following powers and related provisions in or under the Act have been exercised by the FSA to make the rules in COLL: | |
Section 138 (General rule-making power) | |
Section 139 (Miscellaneous ancillary powers) | |
Section 140 (Restriction on managers of certain collective investment schemes) | |
Section 145 (Financial promotion rules) | |
Section 156 (General supplementary powers) | |
Section 238(5) (Restrictions on promotion) | |
Section 242 (Applications for authorisation of unit trust schemes) | |
Section 247 (Trust scheme rules) | |
Section 248 (Scheme particulars rules) | |
Section 278 (Rules as to scheme particulars) | |
Section 340 (Appointment) | |
Paragraph 17 (Fees) of Schedule 1 (The Financial Services Authority) | |
Regulation 6 (FSA rules) of the OEIC regulations |
COLL Sch 4.2
See Notes
- 01/12/2004
COLL Sch 4.3
See Notes
- 01/12/2004
COLL Sch 5
Rights of action for damages
- 01/12/2004
COLL Sch 5.1
See Notes
The table below sets out the rules in COLL contravention of which by an authorised person may be actionable under section 150 of the Act (Actions for damages) by a person who suffers loss as a result of the contravention. | |
If a Yes appears in the column headed For private person, the rule may be actionable by a private person under section 150 unless a Yes appears in the column headed Removed. A Yes in the column headed Removed indicates that the FSA has removed the right of action under section 150(2) of the Act. If so, a reference to the rule in which it is removed is also given. | |
In accordance with The Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001 (SI 2001/2256), a private person is: | |
(1) | any individual, except when acting in the course of carrying on a regulated activity; and |
(2) | any person who is not an individual, except when acting in the course of carrying on business of any kind; |
but does not include a government, a local authority or an international organisation. | |
The column headed For other person indicates whether the rule is actionable by a person other than a private person, in accordance with those Regulations. If so, an indication of the type of person by whom the rule is actionable is given. |
- 01/12/2004
COLL Sch 5.2
See Notes
1. Actions for damages: the New Collective Investment Schemes Sourcebook | ||||||
Chapter/Appendix | Section/Annex | Paragraph | Right of action section 150 | |||
For private person? | Removed | For other person? | ||||
All rules in COLL | Yes | No | No |
- 01/12/2004
COLL Sch 6
Rules that can be waived
- 01/12/2004
COLL Sch 6.1
See Notes
1. The rules in COLL can be waived by the FSA under sections 148 or 250 of the Act (Modification or waiver of rules) or regulation 7 of the OEIC Regulations (Modification or waiver of FSA rules), except COLL 3.2.8R (UCITS obligations) and COLL 6.9.9 (Restrictions of business for UCITS management companies). |
- 01/12/2004
COLL Sch 6.2
See Notes
2. Although the FSA has the formal power of waiver under the Act in relation to these rules, much of COLL implements the requirements of the UCITS Directive by ensuring that relevant authorised funds comply with such requirements. Accordingly, while formal power may exist to waive such UCITS Directive derived rules, the FSA's ability to do so is severely constrained. |
- 01/12/2004