Financial Services and Markets Bill - continued        House of Lords
PART XVII, COLLECTIVE INVESTMENT SCHEMES - continued

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  CHAPTER III
  AUTHORISED UNIT TRUST SCHEMES
 
Applications for authorisation
Applications for authorisation of unit trust schemes.     235. - (1) Any application for an order declaring a unit trust scheme to be an authorised unit trust scheme must be made to the Authority by the manager and trustee, or proposed manager and trustee, of the scheme.
 
      (2) The manager and trustee (or proposed manager and trustee) must be different persons.
 
      (3) The application-
 
 
    (a) must be made in such manner as the Authority may direct; and
 
    (b) must contain or be accompanied by such information as the Authority may reasonably require for the purpose of determining the application.
      (4) At any time after receiving an application and before determining it, the Authority may require the applicants to provide it with further information.
 
      (5) Different directions may be given, and different requirements imposed, in relation to different applications.
 
      (6) The Authority may require applicants to present information which they are required to give under this section in such form, or to verify it in such a way, as the Authority may direct.
 
Authorisation orders.     236. - (1) If, on an application under section 235 in respect of a unit trust scheme, the Authority-
 
 
    (a) is satisfied that the scheme complies with the requirements set out in this section,
 
    (b) is satisfied that the scheme complies with the requirements of the trust scheme rules, and
 
    (c) has been provided with a copy of the trust deed and a certificate signed by a solicitor to the effect that it complies with such of the requirements of this section or those rules as relate to its contents,
  the Authority may make an order declaring the scheme to be an authorised unit trust scheme.
 
      (2) In this Chapter "authorisation order" means an order under subsection (1).
 
      (3) The manager and the trustee must be persons who are independent of each other.
 
      (4) The manager and the trustee must each-
 
 
    (a) be a body corporate incorporated in the United Kingdom or another EEA State, and
 
    (b) have a place of business in the United Kingdom,
  and the affairs of each must be administered in the country in which it is incorporated.
 
      (5) If the manager is incorporated in another EEA State, the scheme must not be one which satisfies the requirements prescribed for the purposes of section 258.
 
      (6) The manager and the trustee must each be an authorised person and the manager must have permission to act as manager and the trustee must have permission to act as trustee.
 
      (7) The name of the scheme must not be undesirable or misleading.
 
      (8) The purposes of the scheme must be reasonably capable of being successfully carried into effect.
 
      (9) The participants must be entitled to have their units redeemed in accordance with the scheme at a price-
 
 
    (a) related to the net value of the property to which the units relate; and
 
    (b) determined in accordance with the scheme.
      (10) But a scheme is to be treated as complying with subsection (9) if it requires the manager to ensure that a participant is able to sell his units on an investment exchange at a price not significantly different from that mentioned in that subsection.
 
Determination of applications.     237. - (1) An application under section 235 must be determined by the Authority before the end of the period of six months beginning with the date on which it receives the completed application.
 
      (2) The Authority may determine an incomplete application if it considers it appropriate to do so; and it must in any event determine such an application within twelve months beginning with the date on which it first receives the application.
 
      (3) The applicant may withdraw his application, by giving the Authority written notice, at any time before the Authority determines it.
 
 
Applications refused
Procedure when refusing an application.     238. - (1) If the Authority proposes to refuse an application made under section 235 it must give each of the applicants a warning notice.
 
      (2) If the Authority refuses the application-
 
 
    (a) it must give each of the applicants a decision notice; and
 
    (b) either applicant may refer the matter to the Tribunal against the refusal.
      (3) Neither applicant is to be treated as a third party for the purposes of section 375(2) or 376(2).
 
 
Certificates
Certificates.     239. - (1) If the manager or trustee of a unit trust scheme which complies with the conditions necessary for it to enjoy the rights conferred by any relevant Community instrument so requests, the Authority may issue a certificate to the effect that the scheme complies with those conditions.
 
      (2) Such a certificate may be issued on the making of an authorisation order in respect of the scheme or at any subsequent time.
 
 
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Prepared 11 February 2000