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CIS 10.3 Contents of annual and half-yearly reports

Application

CIS 10.3.1R

This section (CIS 10.3) applies to the directors of an ICVC (for a report on an ICVC) and to the manager (for a report on an AUT), except CIS 10.3.7 R (Duty of the ACD), which applies only to the ACD.

Explanation

CIS 10.3.2G

This section sets out the contents of each annual and half-yearly report. It sets the scene for CIS 10.4 (Information to be included in annual and half-yearly reports). That section outlines some more detailed information, which must be included in reports on authorised funds. In particular, it distinguishes between requirements to be included in reports on umbrella schemes and reports on other types of authorised funds.1

Annual reports

CIS 10.3.3R
  1. (1)

    An annual report on an authorised fund other than an umbrella scheme must contain:

    1. (a)

      full accounts for the annual accounting period which must, subject to the rules in this chapter, include all the matters required to be included in them by the IMA SORP. Accordingly, references to those accounts (and to short form accounts mentioned in CIS 10.3.6 R) are not to be construed to relate only to the balance sheet and the statement of total return;2

    2. (b)

      the information required to comply with CIS 10.4.2 R and CIS 10.4.5 R (Comparative table);

    3. (c)

      (for an annual report on an ICVC) the report of the depositary referred to in CIS 10.4.6 R (Report of the depositary of an ICVC) or (for an annual report on an AUT) the report of the trustee referred to in CIS 10.4.7 R (Report of the trustee of an AUT); and

    4. (d)

      the report of the auditor referred to in CIS 10.4.8 R (Report of the auditor).

  2. (2)

    An annual report on an umbrella scheme must contain:

    1. (a)

      reports relating to each of its sub-funds which must, so far as practicable, contain the accounts and the information that would be required by (1)(a) and (1)(b) if each sub-fund were a separate authorised fund;

    2. (b)

      an aggregation of the accounts required by (a); and

    3. (c)

      except as contained in a report relating to a sub-fund in accordance with (a):

      1. (i)

        the information referred to in (1)(b);

      2. (ii)

        (for an annual report on an ICVC) the report of the depositary referred to in CIS 10.4.6 R (Report of the depositary of an ICVC) or (for an annual report on an AUT) the report of the trustee referred to in CIS 10.4.7 R (Report of the trustee of an AUT); and

      3. (iii)

        the report of the auditor referred to in CIS 10.4.8 R (Report of the auditor).

  3. (3)

    An annual report relating to a sub-fund which is not part of a report under (2) must contain:

    1. (a)

      so far as practicable, the accounts and the information that would be required by (1)(a) and (1)(b) if the sub-fund were a separate authorised fund;

    2. (b)

      the copy report relating to the umbrella scheme referred to in (2)(c)(ii); and

    3. (c)

      the report of the auditor referred to in CIS 10.4.8 R (Report of the auditor).

  4. (4)

    The directors of an ICVC or the manager of an AUT must ensure that the accounts referred to in (1)(a), (2)(a) and (3)(a) give a true and fair view of the net income and the net gains or losses on the scheme property of the authorised fund or, in the case of (2)(a) and (3)(a), sub-fund, for the annual accounting period in question and the financial position of the authorised fund or sub-fund as at the end of that period.

Half-yearly reports

CIS 10.3.4R
  1. (1)

    A half yearly report on an authorised fund, other than an umbrella scheme must contain:

    1. (a)

      full accounts for the half-yearly accounting period which must, subject to the rules in this chapter, consist of the matters required by the IMA SORP; and2

    2. (b)

      the information required to comply with CIS 10.4.2 R;

  2. (2)

    A half yearly report on an umbrella scheme must contain:

    1. (a)

      reports relating to each of its sub-funds which must, so far as practicable, contain the accounts and information that would be required by (1) if each sub-fund were a separate authorised fund; and

    2. (b)

      an aggregation of the accounts required by (a) and, except as contained in a report relating to a sub-fund in accordance with (a), the information required to comply with CIS 10.4.2 R.

  3. (3)

    A half-yearly report relating to a sub-fund which is not part of a report under (2) must contain so far as practicable the accounts and information that would be required by (1) if the sub-fund were a separate authorised fund.

Signing of reports

CIS 10.3.5R
  1. (1)

    Each report on an ICVC (other than a report prepared under CIS 10.3.3 R (2)(a)and CIS 10.3.4 R (2)(a)) must be signed by the ACD, or, if there is more than one director of the ICVC, must, following approval of the report by the board of directors, be signed on behalf of the board of directors of the ICVC by the ACD and at least one other director.

  2. (2)

    Each report on an AUT (other than a report prepared in accordance with CIS 10.3.3 R (2)(a)or CIS 10.3.4 R (2)(a)) must be signed by two directors of the manager or, if the manager has only one director, by that director.

Short form accounts in reports

CIS 10.3.6R
  1. (1)

    If the directors of an ICVC or the manager of an AUT so determine, the accounts contained in a report sent or supplied to each holder in accordance with CIS 10.5.2 R (2)and (3) may be short form accounts except to the extent that, in respect of any particular accounting period, a holder (or for joint holders, the first named) has requested that a report containing the full accounts of the authorised fund or umbrella scheme be sent or supplied to him.

  2. (2)

    An annual report that contains short form accounts in accordance with (1) must contain:

    1. (a)

      the statement and any report required under CIS 10.4.4 R (Report of the directors or report of the manager: short form accounts); and

    2. (b)

      the auditor's statement required under CIS 10.4.9 R instead of the report of the auditor referred to in CIS 10.4.8 R, unless the latter is qualified, in which case the annual report must contain both.

  3. (3)

    Short-form accounts must comply with the relevant requirements of the IMA SORP. 2

  4. (4)

    Accounts to be included in a report to be published or offered in accordance with CIS 10.5.2 R (Publication of reports), CIS 10.5.3 R (Reports to be offered to purchasers of units) or CIS 10.5.4 R (Publication of availability of reports and prospectus) may only be short form accounts to the extent permitted by (1), (2) and (3).

Duty of the ACD

CIS 10.3.7R

The ACD must ensure that each annual and half-yearly report (including any accounts to be contained in it) complies with CIS 10.3.3 R (Annual reports), CIS 10.3.4 R (Half yearly reports), CIS 10.3.5 R (Signing of reports) and (where applicable) with CIS 10.3.6 R (Short form accounts in reports).