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COLL 7.5 Schemes or sub-funds that are not commercially viable

Explanation of this section

COLL 7.5.1G

  1. (1)

    The FCA expects that the majority of requests it will receive for the winding up of an authorised fund (under regulation 21(1) of the OEIC Regulations or under sections1 256 or 261W1 of the Act) or termination of a sub-fund will be from authorised fund managers and depositaries who consider that the AUT, ACS1, ICVC or sub-fund in question is no longer commercially viable.

  2. (2)

    It is in consumers' interests to minimise, as far as possible, the period between which the FCA receives such requests and responds to them. To assist the FCA in arriving at a quick decision, based on all the relevant factors, it would be helpful for the FCA to receive the information listed at COLL 7.5.2 G. Further information, however, may be requested by the FCA after receipt of the information, depending on the individual circumstances of the case.

Information to be provided to the FCA

COLL 7.5.2G

The information referred to in COLL 7.5.1 G is listed below:

  1. (1)

    the name of the authorised fund or sub-fund;

  2. (2)

    the size of the authorised fund or sub-fund;

  3. (3)

    the number of Unitholders;

  4. (4)

    whether dealing in units has been suspended;

  5. (5)

    why the request is being made;

  6. (6)

    what consideration has been given to the authorised fund or sub-fund entering into a scheme of arrangement with another regulated collective investment scheme and the reasons why a scheme of arrangement is not feasible;

  7. (7)
    1. (a)

      whether Unitholders have been informed of the intention to seek termination, winding up or revocation; and

    2. (b)

      if not, when they will be informed;

  8. (8)

    details of any proposed preferential switching rights offered or to be offered to Unitholders;

  9. (9)

    details of any proposed rebate of charges to be made to Unitholders who recently purchased units;

  10. (10)

    where the costs of winding up or termination will fall;

  11. (11)

    the depositary's:

    1. (a)

      statement whether having taken reasonable care it is certain that a scheme of arrangement is not feasible and explaining what steps have been considered that would result in the authorised fund or sub-fund not needing to wind up or terminate (for example, appointing a replacement authorised fund manager); and

    2. (b)

      confirmation that it will not or does not expect to qualify a report made in accordance with COLL 4.5.11 R (Report of the depositary);

  12. (12)

    the preferred date for the FCA's determination to revoke authorisation or the date for the commencement of the winding up or termination; and

  13. (13)

    any additional information or material considered to be relevant to the FCA's decision under sections 251,1 256, 261Q and 261W1 of the Act or regulation 21 of the OEIC Regulations (as appropriate).

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