F1PART 4APROPERTY AIFS

Annotations:
Amendments (Textual)

CHAPTER 2ENTRY INTO AND MEMBERSHIP OF THE PROPERTY AIF REGIME

The genuine diversity of ownership condition

The genuine diversity of ownership condition69J

1

The genuine diversity of ownership condition is that the open-ended investment company must meet conditions A to F throughout the accounting period.

This is subject to paragraphs (8) and (9).

2

Condition A is that the company’s instrument of incorporation and prospectus in issue for the time being—

a

contain a statement that shares in the company will be widely available, and

b

specify the intended categories of investor.

3

Condition B is that the specification of intended categories of investor referred to in paragraph (2)(b) does not have the effect of limiting the intended investors to a limited number of specific persons or specific groups of connected persons.

4

Condition C is that shares in the company—

a

must be marketed and made available sufficiently widely to reach the intended categories of investors, and

b

must be marketed and made available in a manner appropriate to attract those categories of persons.

5

Condition D is—

a

that a person may easily acquire shares in the company, and may acquire the shares in the same way as a person may acquire shares or units in other authorised investment funds that are widely available, or

b

in the case of a qualified investor scheme, that a person qualified to invest may, without difficulty, obtain information about the company and acquire shares in it.

6

Condition E is that the minimum investment is not unreasonably high in view of the risk profile of the company or the intended categories of investors.

7

Condition F is that, in comparison with charges imposed on larger investors, charges imposed on smaller investors will not be greater than is commercially normal and reasonable.

8

The open-ended investment company meets the genuine diversity of ownership condition if—

a

an investor in the company is a unit trust scheme (a “feeder fund”), and

b

paragraphs (2) to (7) are met in relation to the company after taking into account the intended investors in the feeder fund.

9

If paragraph (8) applies—

a

the open-ended investment company and the feeder fund must have the same manager (or proposed manager),

b

a notice under regulation 69O must be accompanied by the feeder fund’s trust deed and prospectus in issue, and

c

paragraphs (7) and (8) of regulation 69P apply in relation to the feeder fund’s trust deed and prospectus as they apply to the open-ended investment company’s instrument of incorporation and prospectus (or, as the case may be, to the proposed company’s instrument of incorporation and prospectus).

10

For the purposes of this regulation—

a

sections 993 and 994 of ITA 2007 (connected persons) apply in the case of a person chargeable to income tax, and

b

section 839 of ICTA (connected persons) applies in the case of a person chargeable to corporation tax.