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CIS 16.5 Restrictions of business for UCITS management companies2

CIS 16.5.1R

A UCITS management company must not engage in any activities other than:

  1. (1)

    acting as:

    1. (a)

      authorised fund manager of an authorised fund; or

    2. (b)

      an operator of any other collective investment scheme for which the firm is subject to prudential supervision;

  2. (2)

    activities for the purposes of or in connection with those in (1);

  3. (3)

    collective portfolio management, including without limitation:

    1. (a)

      investment management;

    2. (b)

      administration:

      1. (i)

        legal and fund management accounting services;

      2. (ii)

        customer enquiries;

      3. (iii)

        valuation and pricing (including tax returns);

      4. (iv)

        regulatory compliance monitoring;

      5. (v)

        maintenance of Unitholder register;

      6. (vi)

        distribution of income;

      7. (vii)

        unit issues and redemptions;

      8. (viii)

        contract settlements (including certificate dispatch); and

      9. (ix)

        record keeping; and

    3. (c)

      marketing;

  4. (4)

    managing investments where the relevant portfolio includes one or more ISD instruments;

  5. (5)

    advising on investments where:

    1. (a)

      the firm has a permission for the activity in (4); and

    2. (b)

      each of the instruments is an ISD instrument; and

  6. (6)

    safekeeping and administration of collective investment scheme units where the firm has a permission for the activity in (4).23

CIS 16.5.2G
  1. (1)

    Examples of the connected activities referred to in CIS 16.5.1 R(2) include management of group plans, as long as they are dedicated to investments in unit trusts and OEICS for which the firm acts as manager or ACD.

  2. (2)

    The restrictions of business imposed by CIS 16.5.1 R reflect the position under Article 5 of the UCITS Directive. In accordance with recital (7) of the amending UCITS Management Directive (2001/107/EC) the activities referred to at CIS 16.5.1 R (3)(a) to (c) may be performed on behalf of EEA UCITS management companies.13