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Status: You are viewing the version of the handbook as on 2005-06-30.

CIS 7.8 The manager

Management duties

CIS 7.8.1R
  1. (1)

    The manager must manage the AUT in accordance with:

    1. (a)

      the trust deed;

    2. (b)

      the rules in this sourcebook; and

    3. (c)

      the most recently published prospectus.

  2. (2)

    It is the manager's right and duty, subject to (1), to make decisions as to the constituents of the scheme property in accordance with the investment objectives and policy stated in the prospectus.

  3. (3)

    The manager must instruct the trustee from time to time in writing how rights attaching to the ownership of the scheme property are to be exercised; but not in any case where, under CIS 7.9.5 R (2)(Exercise of the rights in respect of the scheme property), the trustee has the right to exercise (or not exercise) voting rights after consultation with the manager.

  4. (4)

    The duty at (1) extends to taking all reasonable steps, and exercising due diligence, to ensure that the units in the AUT are priced in accordance with CIS 4 (for a single-priced AUT) or CIS 15 (for a dual-priced AUT).

  5. (5)

    The duty at (1) extends to taking action immediately to rectify any breach of CIS 4 or CIS 15 and, where the breach relates to the incorrect pricing of units, or to the late payment in respect of the issue of units, rectification must, unless the trustee otherwise directs, extend to the reimbursement or payment of money:

    1. (a)

      by the manager to Unitholders or to former Unitholders;

    2. (b)

      by the manager to the trustee; or

    3. (c)

      by the trustee (for the account of the AUT) to the manager;

    but rectification need not, unless the trustee otherwise directs, extend to any such reimbursement or payment where it appears to the trustee that the incorrect pricing, or late payment in respect of issue, is of minimal significance.

Valuation and pricing

CIS 7.8.2G

For the purposes of CIS 7.8.1 R(4) and (5), CIS 7 Annex 1 G contains guidance on the valuation and pricing of authorised funds, including:

  1. (1)

    pricing controls and the valuation of the scheme property;

  2. (2)

    recording and reporting of incorrect pricing; and

  3. (3)

    procedures to be adopted following incorrect prices, including action that should be taken to rectify any breach.

Maintenance of records

CIS 7.8.3R
  1. (1)

    The manager must make and retain accounting and other records that are necessary:

    1. (a)

      to enable it to comply with the rules in this sourcebook; and

    2. (b)

      to demonstrate at any time that such compliance has been achieved.

  2. (2)

    The manager must make and retain for a period of six years a daily record of the units held, acquired or disposed of, by it, including the classes of such units, and of the balance of any acquisitions and disposals.

  3. (3)

    The manager must make the daily record available for inspection in the United Kingdom by the trustee free of charge at all times during ordinary office hours and must supply the trustee with a copy of the record or any part of it on request free of charge.

  4. (4)

    Except when the policy of the manager stated in the prospectus is neither to require a dilution levy nor to make a dilution adjustment, it must make and retain for a period of six years from the date each record is made a daily record of:

    1. (a)

      how it calculates and estimates dilution;

    2. (b)

      its policy and method for determining the amount of any dilution levy or dilution adjustment.1

Manager to supply information to trustee

CIS 7.8.4R

The manager must on the request of the trustee immediately supply it with such information concerning the management and administration of the AUT as the trustee may reasonably require.

Auditor

CIS 7.8.5R
  1. (1)

    The manager must, at the outset and upon any vacancy, with the approval of the trustee appoint as an auditor for the AUT any person qualified for appointment as auditor of an authorised person.

  2. (2)

    The audit fees of the auditor are determined by the manager with the approval of the trustee.

  3. (3)

    The manager may, with the approval of the trustee, at any time, remove an auditor; this power exists notwithstanding anything in any agreement between the persons concerned.

Tax returns

CIS 7.8.6R

The manager must from time to time prepare and supply to the trustee the returns relating to the scheme property required to be submitted by the trustee to HM Revenue and Customs2.

2