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The Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001

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There are currently no known outstanding effects for The Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001, Section 14. Help about Changes to Legislation

Investment professionalsU.K.

14.—(1) The scheme promotion restriction does not apply to any communication which—

(a)is made only to recipients whom the person making the communication believes on reasonable grounds to be investment professionals; or

(b)may reasonably be regarded as directed only at such recipients.

(2) For the purposes of paragraph (1)(b), if all the conditions set out in paragraph (4)(a) to (c) are met in relation to the communication, it is to be regarded as directed only at investment professionals.

(3) In any other case in which one or more of the conditions set out in paragraph (4)(a) to (c) are met, that fact shall be taken into account in determining whether the communication is directed only at investment professionals (but a communication may still be regarded as so directed even if none of the conditions in paragraph (4) is met).

(4) The conditions are that—

(a)the communication is accompanied by an indication that it is directed at persons having professional experience of participating in unregulated schemes and that the units to which the communication relates are available only to such persons;

(b)the communication is accompanied by an indication that persons who do not have professional experience in participating in unregulated schemes should not rely on it;

(c)there are in place proper systems and procedures to prevent recipients other than investment professionals from acquiring from the person directing the communication, a close relative of his or a company in the same group, units in the scheme to which the communication relates.

(5) “Investment professionals” means—

(a)an authorised person;

(b)a person who is exempt, as a result of an exemption order made under section 38(1) of the Act, in relation to one or more relevant scheme activities;

(c)any other person—

(i)whose ordinary activities involve him in participating in unregulated schemes for the purposes of a business carried on by him; or

(ii)who it is reasonable to expect will so participate for the purposes of a business carried on by him;

(d)a government, local authority (whether in the United Kingdom or elsewhere) or an international organisation;

(e)a person (“A”) who is a director, officer or employee of a person (“B”) falling within any of sub-paragraphs (a) to (d), when the communication is made to A in that capacity and where A’s responsibilities when acting in that capacity involve him in B’s participation in unregulated schemes.

(6) For the purposes of paragraph (1), a communication is to be treated as made only to or directed only at investment professionals even if it also made to or directed at other persons to whom it may lawfully be communicated.

(7) In this article—

“government” means the government of the United Kingdom, the Scottish Administration, the Executive Committee of the Northern Ireland Assembly, the National Assembly for Wales and any government of any country or territory outside the United Kingdom;

“international organisation” means any body the members of which comprise—

(a)

states including the United Kingdom or another EEA State; or

(b)

bodies whose members comprise states including the United Kingdom or another EEA State.

Commencement Information

I1Art. 14 in force at 1.12.2001, see art. 1(2)

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