No payment or benefit, other than a payment or benefit to the ACD not prohibited by any other of the rules in this sourcebook, may be made out of or given at the expense of the scheme property to any person in consideration of that person acquiring (whether directly, indirectly, absolutely or conditionally) or promoting the sale of, or agreeing so to acquire or to promote the sale of, shares in the ICVC.
No payment may be made out of the scheme property of an ICVC and no redemption charge may be made if the amount or frequency of the payment or the amount of the redemption charge is intended to depend upon fluctuations in:
the value of the scheme property; or
the income attributable to it; or
as compared with fluctuations in the value or price of property of any description or in an index or other factor designated for the purpose.
When (2) applies, costs of the authorisation and incorporation of an ICVC and of its initial offer or issue of shares (or initial offer or issue of shares in respect of a sub-fund) may, subject to CIS 8.3.1 R (Promotional payments), be amortised over a period not exceeding five years.
Amortisation under (1) is only permitted if, on or before 30 November 2000, it had commenced and been disclosed in the prospectus.
Any broker'scommission, fiscal charges and other disbursements, which are necessary to be incurred in effecting transactions for the ICVC, and normally shown in contract notes, confirmation notes or difference accounts, may be charged to the capital account.
interest on borrowings and charges incurred in effecting, terminating, negotiating or varying the terms of borrowings;
taxation and duties payable in respect of scheme property; and
costs of the types described in CIS 8.3.4 R (Set up costs);
All other payments out of the scheme property must be made from income property in the first instance, but a transfer of the debit item from the income account to the capital account may be made if the expense is considered to be capital in nature.
any payments permitted by CIS 8.2.3 R (Payments by an ICVC to the ACD); and
any other charges and expenses of the ICVC;