PART 3REPORTING FUNDS AND THE TREATMENT OF PARTICIPANTS IN REPORTING FUNDS
CHAPTER 6TRANSACTIONS BY CERTAIN REPORTING FUNDS WHICH ARE NOT TREATED AS TRADING
Conditions to be met by reporting funds for this Chapter to apply
The genuine diversity of ownership condition75
1
The genuine diversity of ownership condition is met if the fund meetsF2,or, in relation to a fund constituted by a class of interests in the main arrangements, the main arrangements meet, conditions A to C throughout the period of account.
C1C22
Condition A is that the fund produces documents, available to investors and to HMRC, which contain—
a
a statement specifying the intended categories of investor,
b
an undertaking that interests in the fund will be widely available, and
c
an undertaking that interests in the fund will be marketed and made available in accordance with the requirements of paragraph (4)(a).
3
Condition B is—
a
that the specification of the intended categories of investor do not have a limiting or deterrent effect, and
b
that any other terms or conditions governing participation in the fund do not have a limiting or deterrent effect.
4
Condition C is—
a
that interests in the fund must be marketed and made available—
i
sufficiently widely to reach the intended categories of investors, and
ii
in a manner appropriate to attract those categories of investors, and
b
that a person who falls within one of the intended categories of investors can, upon request to the manager of this fund, obtain information about the fund and acquire units in it.
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A fund also meets the genuine diversity of ownership condition if—
a
an investor in the fund is an offshore fund, an open-ended investment company or an authorised unit trust scheme (“the feeder fund”),
b
conditions A to C are met in relation to the fund after taking into account—
i
the fund documents relating to the feeder fund, and
ii
the intended investors in the feeder fund, and
c
the fund and the feeder fund have the same manager (or proposed manager).