The Collective Investment Schemes (Miscellaneous Amendments) Regulations 2003

PART 3 Authorisation of Unit Trust Schemes and Management Companies

Power to restrict the activities of a management company

5.  In section 140 of the Act (restriction on managers of authorised unit trust schemes)—

(a) in the side note, for “authorised unit trust schemes”, substitute “certain collective investment schemes”;

(b) for subsection (1), substitute—

“(1) The Authority may make rules prohibiting an authorised person who has permission to act as—

(a) the manager of an authorised unit trust scheme, or

(b) the management company of an authorised UCITS open-ended investment company, from carrying on a specified activity.”; and

(c) after subsection (2), insert—

“(3) In this section—

(a) “authorised UCITS open-ended investment company” means an authorised open-ended investment company to which the UCITS directive applies; and

(b) “management company” has the meaning given by Article 1a.2 of the UCITS directive.”.

Control over management companies

6.  In the Financial Services and Markets Act 2000 (Consultation with Competent Authorities) Regulations 2001(1)—

(a) in regulation 2 (interpretation), after the definition of “EEA investment firm”, insert—

““EEA management company” means an EEA firm falling within paragraph 5(f) of Schedule 3 to the Act(2);”;

(b) in regulation 3, for “paragraph (1) or (2)”, substitute “paragraph (1), (2) or (3)”;

(c) in regulation 4(a), for “paragraph (1) or (2)”, substitute “paragraph (1), (2), or (3)”;

(d) in regulation 5, after paragraph (2), insert—

“(3) This paragraph applies where—

(a) a person (“the acquirer”) proposes to acquire or has acquired control, an additional kind of control or an increase in a relevant kind of control over a UK authorised person in circumstances falling within section 178(1) or (2) of the Act;

(b) that UK authorised person has permission to operate a collective investment scheme;

(c) the acquirer is either—

(i) an EEA management company; or

(ii) the parent undertaking of an EEA management company; and

(d) as a result of the acquisition or proposed acquisition, the acquirer is or would become a parent undertaking of the UK authorised person.”; and

(e) in regulation 6, for “or each EEA credit institution that is mentioned in regulation 5(2)(c)(i) or (ii)”, substitute “, each EEA credit institution that is mentioned in regulation 5(2)(c)(i) or (ii) or each EEA management company that is mentioned in regulation 5(3)(c)(i) or (ii)”.

Participation of EEA management companies in the compensation scheme

7.  In the Financial Services and Markets Act 2000 (Compensation Scheme: Electing Participants) Regulations 2001(3)—

(a) in regulation 1(2) (interpretation)—

(i) in the definition of “branch”, after paragraph (b), insert—

“(c) in relation to a relevant management company, has the meaning given by Article 1.5 of the investor-compensation schemes directive (as applied by Article 5f.2 of the UCITS directive);”;

(ii) after the definition of “investor-compensation schemes directive”, insert—

““relevant management company” means an EEA firm falling within paragraph 5(f) of Schedule 3 to the Act which—

(a)

is authorised by its home state regulator to provide services of the kind specified by Article 5.3(a) of the UCITS directive (management of portfolios of investments); and

(b)

is providing those services in the United Kingdom;”;

(b) in regulation 2 (persons not to be regarded as relevant persons)—

(i) at the end of paragraph (b), omit “and”; and

(ii) after paragraph (c), insert—

“; and

(d) any relevant management company.”;

(c) in regulation 3 (persons who may elect to participate), in paragraph (1)(a), after “investment firm”, insert “or relevant management company”;

(d) in regulation 4 (persons in respect of whom inspection under section 224 does not apply)—

(i) at the end of paragraph (b), omit “and”; and

(ii) after paragraph (c), insert—

“; and

(d) any relevant management company.”.

Amendment of the Open-Ended Investment Companies Regulations

8.  In regulation 15(6) of the Open-Ended Investment Companies Regulations 2001(4) (requirements for authorisation), omit “Part IV of”.

Rules applying to management companies

9.  In section 266 of the Act (disapplication of rules), after subsection (1), insert—

“(1A) But subsection (1) does not affect the application of rules to an operator of a scheme if the operator is an EEA firm falling within paragraph 5(f) of Schedule 3 who qualifies for authorisation under that Schedule.”.

(1)

S.I. 2001/2509.

(2)

Amended by S.I. 2000/2952, S.I. 2001/1376, S.I. 2003/1473 and these Regulations.

(3)

S.I. 2001/1783; amended by S.I. 2003/1476.

(4)

S.I. 2001/1228.