The Bearer Certificates (Collective Investment Schemes) Regulations 2020 No. 1346

SCHEDULE U.K. TRANSITIONAL PROVISION

PART 2 U.K. CONVERSION AND CANCELLATION OF EXISTING BEARER UNITS IN OTHER COLLECTIVE INVESTMENT SCHEMES ON OR BEFORE 1 JANUARY 2022

Payment of dividends and other distributions during the surrender year U.K.

12.—(1) A dividend or other distribution paid in the surrender year in respect of an outstanding bearer unit must be paid by the operator into the account opened by the scheme in accordance with subparagraph (3). U.K.

(2) Where a unit is converted under paragraph 10, the person registered under paragraph 10(3) in respect of the unit is entitled to—

(a) any amounts paid into that account in respect of the unit under subparagraph (1), and

(b) any interest accrued on those amounts while held in that account.

(3) Where any payments are to be made under subparagraph (1) or paragraph 13 in respect of units of a particular scheme, the operator of the scheme must open a separate bank account for the purpose of receiving the payments, and must do so before the first of any such payments is to be made.

(4) The terms of the account must be such that its balance—

(a) bears interest at an appropriate rate, and

(b) can be withdrawn during banking hours without having to give prior notice.

Commencement Information

I1 Sch. para. 12 in force at 1.1.2021, see reg. 1(2)