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COLL 11.2 Approval of a feeder UCITS

Explanation

COLL 11.2.1G
  1. (1)

    Section 283A(1) (Master-feeder structures) of the Act, in implementation of article 59(1) of the UCITS Directive, 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 implementing article 55 of the UCITS Directive, unless the investment is approved by the FCA in accordance with that section.

  2. (2)

    The FCA has implemented article 55(1) of the UCITS Directive in COLL 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.

Application for approval of an investment in a master UCITS

COLL 11.2.2R
  1. (1)

    An application for approval of an investment in a master UCITS under section 283A of the Act must be accompanied by the following documents:

    1. (a)

      the instrument constituting the fund1 of the feeder UCITS and of the master UCITS;

      1
    2. (b)

      the prospectus and the key investor information referred to in COLL 4.7.2 R (Key investor information) of the feeder UCITS and of the master UCITS;

    3. (c)

      the master-feeder agreement or the internal conduct of business rules in accordance with COLL 11.3.2R (2) (Master-feeder agreement and internal conduct of business rules);

    4. (d)

      where applicable, the information to be provided to Unitholders in accordance with COLL 4.8.3 R (Information to be provided to Unitholders);

    5. (e)

      if the master UCITS and the feeder UCITS have different depositaries, the information-sharing agreement in accordance with COLL 11.4.1R (2) (Information-sharing agreement between depositaries); and

    6. (f)

      if the master UCITS and the feeder UCITS have different auditors, the information-sharing agreement in accordance with COLL 11.5.1 R (Information-sharing agreement between auditors).

  2. (2)

    Where the master UCITS is an EEA UCITS scheme, the application for approval must also be accompanied by an attestation by the master UCITS's Home State regulator that the master UCITS:

    1. (a)

      is an EEA UCITS scheme or a sub-fund of it; and

    2. (b)

      fulfils the conditions set out in article 58(3)(b) and (c) of the UCITS Directive.

  3. (3)

    The documents referred to in (1) and (2) must be provided in English.

[Note: article 59(3) of the UCITS Directive]