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The Undertakings for Collective Investment in Transferable Securities Regulations 2011

Consolidated Text Cited authorities 74 Cited in Amendments 38 Related
Vincent
JurisdictionUK Non-devolved
CitationSI 2011/1613
Year2011
  • These Regulations may be cited as the Undertakings for Collective Investment in Transferable Securities Regulations 2011, and come into force on 1st July 2011.
    • (1) The Financial Services and Markets Act 2000 is amended as follows.after “regulation” insert “ or decision ”, andafter “financial instruments directive” insert “ or the UCITS directive ”.(3) After section 90 A person is not to be subject to civil liability solely on the basis of the key investor information produced in relation to a collective investment scheme or a sub-fund of such a scheme in accordance with rules or other provisions implementing Chapter IX of the UCITS directive, or of any translation of that information, unless the key investor information is misleading, inaccurate or inconsistent with the relevant parts of the prospectus published for that collective investment scheme or sub-fund in accordance with rules made by the Authority under section 248 of this Act.the collective investment scheme provides arrangements for separate pooling of the contributions of the participants and the profits and income out of which payments are made to them; andthe participants are entitled to exchange rights in one pool for rights in another.(4) In section 140(3) (b) at the end of sub-paragraph (i) , omit“or”;at the end of sub-paragraph (ii) , insert “ ; or ”;after sub-paragraph (ii) , insert—
      (iii) Article 77 of the UCITS directive,
    .    Article 77 of the UCITS directive,(6) In section 184(7) in subsection (1) , in the definition of “incoming firm”, after paragraph (a) insert—
    • (aa) an EEA UCITS which is a recognised scheme under section 264; or
    ;    an EEA UCITS which is a recognised scheme under section 264; orafter subsection (1) insert—
    • “(1A) In the definition of “incoming firm” references to an EEA UCITS include, in a case where the UCITS is not a body corporate, references to its management company.
    ;    In the definition of “incoming firm” references to an EEA UCITS include, in a case where the UCITS is not a body corporate, references to its management company.in subsection (2) , after “an EEA firm” insert “ or an EEA UCITS ”.(8) For section 195A that a relevant EEA firm has contravened, or is contravening, a requirement falling within subsection (2) (in a case to which Article 62.1 or 62.3 of the markets in financial instruments directive applies) ;that a relevant EEA UCITS has contravened, or is contravening, a requirement falling within subsection (3) (in a case to which Article 108.4 of the UCITS directive applies) .by or under any provision adopted in the firm's home state for the purpose of implementing the markets in financial instruments directive; orby any directly applicable Community regulation made under that directive.by or under any provision adopted in the home state of the EEA UCITS for the purpose of implementing the UCITS directive; orby any directly applicable Community regulation or decision made under that directive.The Authority must notify the home state regulator of the firm or EEA UCITS in writing of the situation mentioned in subsection (1) .request that the home state regulator take all appropriate measures for the purpose of ensuring that the firm or EEA UCITS puts an end to the contravention;state that the Authority's powers of intervention are likely to become exercisable in relation to the firm or EEA UCITS if it continues the contravention; andindicate any requirements that the Authority proposes to impose on the firm or EEA UCITS in exercise of its power of intervention in the event of the power becoming exercisable.a reasonable time has expired since the giving of the notice under subsection (4) ; andconditions A to C are satisfied.the home state regulator of the firm or EEA UCITS has failed or refused to take measures for the purpose mentioned in subsection (5) (a) ; orany measures taken by the home state regulator have proved inadequate for that purpose.Condition B is that the firm or EEA UCITS is acting in a manner which is clearly prejudicial to the interests of investors in the United Kingdom or the orderly functioning of the markets.Condition C is that the Authority has informed the home state regulator of the firm or EEA UCITS of its intention to exercise its power of intervention in respect of the firm or EEA UCITS.Subsection (6) applies whether or not the Authority's power of intervention is also exercisable as a result of section 194 or 195.the fact that the Authority has exercised that power in respect of that firm or EEA UCITS; andany requirements it has imposed on the firm or EEA UCITS in exercise of the power.In this section—
    • “home state” means—
      • (a) in relation to a relevant EEA firm—
        • (i) in the case of a firm which is a body corporate, the EEA State in which the firm has its registered office or, if it has no registered office, its head office; and
        • (ii) in any other case, the EEA State in which the firm has its head office;
      • (b) in relation to a relevant EEA UCITS, the EEA State in which the UCITS is authorised pursuant to Article 5 of the UCITS directive;
    • “relevant EEA firm” means an EEA firm falling within paragraph 5(a) or (b) of Schedule 3 which is exercising in the United Kingdom a right deriving from the markets in financial instruments directive;
    • “relevant EEA UCITS” means a UCITS which is authorised pursuant to Article 5 of the UCITS directive in an EEA State other than the United Kingdom, and references to an EEA UCITS include, in a case where the UCITS is not a body corporate, references to its management company.
    for subsection (2) (a) substitute—
    • (a) it is imposed—
    • (i) by the Authority under this Act, or
    • (ii) under any directly applicable Community regulation or decision made under a single market directive; and
    by the Authority under this Act, orunder any directly applicable Community regulation or decision made under a single market directive; andin subsection (3A) , after “paragraph

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