Section 283A(1) (Master-feeder structures) of the Act2 provides that the operator of a UCITS scheme may not invest a higher proportion of scheme property in units of another UCITS than is permitted by rules made by the FCA (which implemented article 55 of the UCITS Directive)2, unless the investment is approved by the FCA in accordance with that section.
The relevant rule which implemented2 article 55(1) of the UCITS Directive is 2COLL 5.2.11 R (9), which provides that not more than 20% in value of a scheme is to consist of the units of any one collective investment scheme.
- (a) 1
The documents referred to in (1) and (2) must be provided in English.
[Note: article 59(3) of the UCITS Directive]