http://www.legislation.gov.uk/id/uksi/2020/1346/schedule

http://www.legislation.gov.uk/uksi/2020/1346/schedule/paragraph/3/made

The Bearer Certificates (Collective Investment Schemes) Regulations 2020

King's Printer of Acts of Parliament

2020-11-25

FINANCIAL SERVICES AND MARKETS

From 26 June 2017, regulation 48 of the Open-Ended Investment Companies Regulations 2001 (amended by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017), prohibited most business entities in the UK from issuing bearer certificates. These Regulations prohibit bearer certificates for all collective investment schemes based in the UK. Provision is made for the conversion or cancellation of existing bearer certificates within the year from the Regulations coming into force; the payment of dividends or other distributions during that year; and the giving of notice to those who hold bearer certificates.

The Bearer Certificates (Collective Investment Schemes) Regulations 2020

Regulations

Financial Services and Markets Act 2023

Sch. 1

Pt. 2

s. 1(4)

s. 86(3)

The Bearer Certificates (Collective Investment Schemes) Regulations 2020

SCHEDULETRANSITIONAL PROVISION

PART 1CONVERSION AND CANCELLATION OF EXISTING BEARER SHARES IN OPEN-ENDED INVESTMENT COMPANIES ON OR BEFORE 1 JANUARY 2022

Right to convert bearer share to registered share

3

1

Sub-paragraphs (2) and (3) apply where, at a time in the surrender year, the person who is the bearer of an outstanding bearer share delivers to the company—

a

the instrument mentioned in regulation 48 relating to the share,

b

a request for the share to be converted to a registered share, and

c

a statement of the person’s name and address.

2

Delivery of the instrument to the company does not operate as a transfer of the share.

3

The company must—

a

cancel the instrument,

b

c

prepare a share certificate in respect of the share as registered.

4

Sub-paragraphs (2) and (3) do not apply in relation to outstanding bearer shares of which the designated person is the bearer (but see paragraph 4).

5

Regulation 46(2) (expeditious preparation of certificates prepared in accordance with regulation 46(1)(a) to (e)) applies also in relation to a certificate prepared in accordance with sub-paragraph (3)(c).