Part I Regulation of Investment Business

Chapter VIII Collective Investment Schemes

Authorised unit trust schemes

81 Constitution and management.

(1)

The Secretary of State may make regulations as to the constitution and management of authorised unit trust schemes, the powers and duties of the manager and trustee of any such scheme and the rights and obligations of the participants in any such scheme.

(2)

Without prejudice to the generality of subsection (1) above, regulations under this section may make provision—

(a)

as to the issue and redemption of the units under the scheme;

(b)

as to the expenses of the scheme and the means of meeting them;

(c)

for the appointment, removal, powers and duties of an auditor for the scheme;

(d)

for restricting or regulating the investment and borrowing powers exercisable in relation to the scheme;

(e)

requiring the keeping of records with respect to the transactions and financial position of the scheme and for the inspection of those records;

(f)

requiring the preparation of periodical reports with respect to the scheme and the furnishing of those reports to the participants and to the Secretary of State; and

(g)

with respect to the amendment of the scheme.

(3)

Regulations under this section may make provision as to the contents of the trust deed, including provision requiring any of the matters mentioned in subsection (2) above to be dealt with in the deed; but regulations under this section shall be binding on the manager, trustee and participants independently of the contents of the deed and, in the case of the participants, shall have effect as if contained in it.

(4)

Regulations under this section shall not impose limits on the remuneration payable to the manager of a scheme.

(5)

Regulations under this section may contain such incidental and transitional provisions as the Secretary of State thinks necessary or expedient.