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

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Alterations of schemes
Alteration of schemes and changes of manager or trustee.     247. - (1) The manager of an authorised unit trust scheme must give written notice to the Authority of any proposal to alter the scheme or to replace its trustee.
 
      (2) Any notice given in respect of a proposal to alter the scheme involving a change in the trust deed must be accompanied by a certificate signed by a solicitor to the effect that the change will not affect the compliance of the deed with the trust scheme rules.
 
      (3) The trustee of an authorised unit trust scheme must give written notice to the Authority of any proposal to replace the manager of the scheme.
 
      (4) Effect is not to be given to any proposal of which notice has been given under subsection (1) or (3) unless-
 
 
    (a) the Authority, by written notice, has given its approval to the proposal; or
 
    (b) one month, beginning with the date on which the notice was given, has expired without the manager or trustee having received from the Authority a warning notice under section 248 in respect of the proposal.
      (5) The Authority must not approve a proposal to replace the manager or the trustee of an authorised unit trust scheme unless it is satisfied that, if the proposed replacement is made, the scheme will continue to comply with the requirements of section 239(4) to (7).
 
Procedure when refusing approval of change of manager or trustee.     248. - (1) If the Authority proposes to refuse approval of a proposal to replace the trustee or manager of an authorised unit trust scheme, it must give a warning notice to the person by whom notice of the proposal was given under section 247(1) or (3).
 
      (2) If the Authority proposes to refuse approval of a proposal to alter an authorised unit trust scheme it must give separate warning notices to the manager and the trustee of the scheme.
 
      (3) To be valid the warning notice must be received by that person before the end of one month beginning with the date on which notice of the proposal was given.
 
      (4) If, having given a warning notice to a person, the Authority decides to refuse approval-
 
 
    (a) it must give him a decision notice; and
 
    (b) he may refer the matter to the Tribunal.
 
Exclusion clauses
Avoidance of exclusion clauses.     249. Any provision of the trust deed of an authorised unit trust scheme is void in so far as it would have the effect of exempting the manager or trustee from liability for any failure to exercise due care and diligence in the discharge of his functions in respect of the scheme.
 
 
Ending of authorisation
Revocation of authorisation order otherwise than by consent.     250. - (1) An authorisation order may be revoked by an order made by the Authority if it appears to the Authority that-
 
 
    (a) one or more of the requirements for the making of the order are no longer satisfied;
 
    (b) the manager or trustee of the scheme concerned has contravened a requirement imposed on him by or under this Act;
 
    (c) the manager or trustee of the scheme has, in purported compliance with any such requirement, knowingly or recklessly given the Authority information which is false or misleading in a material particular;
 
    (d) no regulated activity is being carried on in relation to the scheme and the period of that inactivity began at least twelve months earlier; or
 
    (e) none of paragraphs (a) to (d) applies, but it is desirable to revoke the authorisation order in order to protect the interests of participants or potential participants in the scheme.
      (2) For the purposes of subsection (1)(e), the Authority may take into account any matter relating to-
 
 
    (a) the scheme;
 
    (b) the manager or trustee;
 
    (c) any person employed by or associated with the manager or trustee in connection with the scheme;
 
    (d) any director of the manager or trustee;
 
    (e) any person exercising influence over the manager or trustee;
 
    (f) any body corporate in the same group as the manager or trustee;
 
    (g) any director of any such body corporate;
 
    (h) any person exercising influence over any such body corporate.
Procedure.     251. - (1) If the Authority proposes to make an order under section 250 revoking an authorisation order ("a revoking order"), it must give separate warning notices to the manager and the trustee of the scheme.
 
      (2) If the Authority decides to make a revoking order, it must without delay give each of them a decision notice and either of them may refer the matter to the Tribunal.
 
Requests for revocation of authorisation order.     252. - (1) An authorisation order may be revoked by an order made by the Authority at the request of the manager or trustee of the scheme concerned.
 
      (2) If the Authority makes an order under subsection (1), it must give written notice of the order to the manager and trustee of the scheme concerned.
 
      (3) The Authority may refuse a request to make an order under this section if it considers that-
 
 
    (a) the public interest requires that any matter concerning the scheme should be investigated before a decision is taken as to whether the authorisation order should be revoked; or
 
    (b) revocation would not be in the interests of the participants or would be incompatible with a Community obligation.
      (4) If the Authority proposes to refuse a request under this section, it must give separate warning notices to the manager and the trustee of the scheme.
 
      (5) If the Authority decides to refuse the request, it must without delay give each of them a decision notice and either of them may refer the matter to the Tribunal.
 
 
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