Part XVII Collective Investment Schemes
F1CHAPTER 3AAUTHORISED CONTRACTUAL SCHEMES
Applications for authorisation
261E.F2Authorised contractual schemes: holding of units
(1)
The participants in a contractual scheme must be entitled to have their units redeemed in accordance with the scheme at a price—
(a)
related to the net value of the property to which the units relate; and
(b)
determined in accordance with the scheme.
(2)
The scheme must not allow units in the scheme to be issued to anyone other than—
(a)
a professional investor;
(b)
a large investor; or
(c)
a person who already holds units in the scheme.
(3)
The scheme must require the operator, if it becomes aware that units have become vested in a person to whom as a result of subsection (2) the units could not have been issued, to redeem the units as soon as practicable.
(4)
In subsection (2)—
“professional investor” means a person who falls within one of the categories F3(a) to (d) of paragraph 3 of Schedule 1 to the markets in financial instruments regulation; and
“large investor” means a person who, in exchange for units in the scheme, makes a payment of, or contributes property with a value of, not less than £1,000,000.