The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001

Manner of investment

269.—(1) Schedule 1(1) to the Trustee Investments Act 1961 (manner of investment) is amended as follows.

(2) In Part 2, for paragraph 10A(2) substitute—

“10A.   In any units of a gilt unit trust scheme.

A gilt unit trust scheme is an authorised unit trust scheme, or a recognised scheme, the objective of which is—

(a) to invest at least 90% of the property of the scheme in loan stock, bonds or other instruments creating indebtedness which—

(i) are transferable; and

(ii) are issued or guaranteed by the government of the United Kingdom or of any other country or territory, by a local authority in the United Kingdom or in a relevant state, or by an international organisation the members of which include the United Kingdom or a relevant state;

(b) to invest the remainder of the property of the scheme in shares, debentures or other instruments creating or acknowledging indebtedness, certificates representing securities or units in a collective investment scheme.

Sub-paragraphs (a) and (b) must be read with—

(i) section 22 of the Financial Services and Markets Act 2000;

(ii) any relevant order under that section; and

(iii) Schedule 2 to that Act.”.

(3) In Part 3, in paragraph 3(3), the words “within the meaning of the Financial Services Act 1986” are repealed.

(4) In that Part, for paragraph 6(4) substitute—

“6. In any units of a recognised scheme which does not fall within Part 2 of this Schedule.”.

(5) In Part 4(5), in paragraphs 2 and 2A, the words “within the meaning of the Financial Services Act 1986” are repealed.

(6) In that Part, after paragraph 4 insert—

“4A.   In this Schedule—

“authorised unit trust scheme” and “recognised scheme” have the meaning given by section 237(3) of the Financial Services and Markets Act 2000;

“collective investment scheme” has the meaning given by section 235 of that Act; and

“recognised investment exchange” has the meaning given by section 285 of that Act.”

(7) Paragraph 6A(6) is repealed.

(1)

Schedule 1 has been repealed, except in so far as it is applied by or under any other enactment, by virtue of the Trustees Act 2000 (c. 29) Schedule 2 Pt. 1, paragraph 1(1).

(2)

Section 10A was inserted by the Finance Act 1982 (c. 39), s. 150, substituted by S.I. 1994/1908 article 2 and amended by S.I. 1995/768 article 3.

(3)

Paragraph 3 was substituted by the Financial Services Act 1986 (c. 60) Schedule 16, paragraph 2(b).

(4)

Paragraph 6 was added by S.I. 1994/1908 article 3.

(5)

Paragraph 2 was amended by the Financial Services Act 1986 (c. 60) Schedule 16, paragraph 2(c) and by S.I. 1994/1908 article 3(1), (3). Paragraph 2A was inserted by S.I. 1994/1908 article 3(1), (4).

(6)

Paragraph 6A was inserted by S.I. 1994/1908 article 3(1), (8).