The Financial Services Act 1986 (Single Property Schemes) (Exemption) Regulations 1989

Exemption from section 76(1) of Act

3.—(1) The restrictions imposed by section 76(1) of the Act shall not apply to a scheme which has the characteristics mentioned in section 76(6) of the Act and which is not yet formally constituted if–

(a) the operator is an authorised person and has given written notice to the Securities and Investments Board that the arrangements for its formal constitution are such that the operator reasonably believes that–

(i) when formally constituted, the scheme will satisfy the applicable provisions of regulations 4 to 39; and

(ii) in the case of a trust based scheme, the person whom it is proposed should be the trustee is a person who fulfils the conditions described in regulation 6(2)(a);

(b) no notice given by the operator of the scheme has been received by the Securities and Investments Board stating that, in the opinion of the operator, the arrangements for the formal constitution of the scheme are no longer such that it is reasonable to believe that the scheme will, when formally constituted, satisfy the applicable provisions of regulations 4 to 39; and

(c) the operator of the scheme is not subject to a prohibition of the kind described in section 65 of the Act which has been imposed on him for reasons related to a scheme of which he is, or was, the operator.

(2) The restrictions imposed by section 76(1) of the Act shall not apply to a scheme which has the characteristics mentioned in section 76(6) of the Act and which is formally constituted if–

(a) the operator is an authorised person and has given written notice to the Securities and Investments Board that, when formally constituted–

(i) the scheme satisfied the applicable provisions of regulations 4 to 39; and

(ii) in the case of a trust based scheme, the trustee is a person who fulfilled the conditions described in regulation 6(2)(a);

(b) no notice of the kind described in regulation 5 has been received by the Securities and Investments Board stating that, in the opinion of the solicitor giving the notice, a particular deletion, amendment or addition will have the effect that the scheme ceases to satisfy an applicable provision of regulations 5 to 39; and

(c) the operator of the scheme is not subject to a prohibition of the kind described in section 65 of the Act which has been imposed on him for reasons related to a scheme of which he is, or was, the operator,

and those restrictions shall not, during the period of 21 days beginning with the date on which the scheme was formally constituted, in any event apply to a scheme which, immediately before that date, was a scheme to which those restrictions did not apply by virtue of the provisions of paragraph (1).