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

COLL 7.2 Suspension and restart of dealings

Requirement

COLL 7.2.1RRP
  1. (1)

    The authorised fund manager may, with the prior agreement of the depositary, and must without delay, if the depositary so requires, suspend the issue, cancellation, sale and redemption of units in an authorised fund (referred to in this chapter as "dealings in units"), where due to exceptional circumstances it is in the interest of all the unitholders in the authorised fund.

  2. (2)

    On suspension, the authorised fund manager, or the depositary if it has required the authorised fund manager to suspend dealings in units, must:

    1. (a)

      immediately inform the FSA, stating the reason for its action; and

    2. (b)

      as soon as practicable give written confirmation of the suspension and the reasons for it to:

      1. (i)

        the FSA; and

      2. (ii)

        the Home State regulator in each EEA State in which the authorised fund manager holds itself out as willing to sell or redeem units of the authorised fund concerned.

  3. (3)

    During a suspension, none of the obligations in COLL 6.2 (Dealing) and COLL 6.3 (Valuation and pricing) apply.

  4. (4)

    The suspension of dealings in units must cease as soon as practicable after the exceptional circumstances referred to in (1) have ceased and, in any event, within 28 days of the commencement of the suspension.

  5. (5)

    The authorised fund manager must inform the FSA of the proposed restart of dealings in units and immediately after the restart must confirm this by giving notice to the FSA and the authorities mentioned in (2)(b)(ii).

  6. (6)

    The authorised fund manager may agree, during the suspension, to deal in units at a price calculated by reference tothe first valuation point after restart of dealings in units, subject to (8).

  7. (7)

    This rule applies to a sub-fund as it applies to an authorised fund, and:

    1. (a)

      references to the units of the class or classes relate to that sub-fund and to the scheme property attributable to the sub-fund; and

    2. (b)

      this rule can only apply to one or more classes of units without being applied to other classes, if it is in the interest of all the unitholders.

  8. (8)

    If an authorised fund operates limited redemption arrangements, and the event in (1) has affected a valuation point, the authorised fund manager must declare an additional valuation point as soon as possible after the restart of dealings in units.