Content Options

Content Options

View Options

You are viewing the version of the document as on 2022-01-01.

EG 19.7 1The Open-Ended Investment Companies Regulations 2001

EG 19.7.1RP

1The OEIC Regulations set out requirements relating to the way in which collective investment may be carried on by open-ended investment companies. Under the OEIC Regulations, the FCA has the power, amongst other things, to:

  • revoke an open-ended investment company’s authorisation in several situations, including where the firm breaches relevant requirements or provides us with false or misleading information (regulation 23);

  • give, vary and revoke certain directions, including that the affairs of the company be wound up (regulations 25 and 28);

  • apply to court for an order that a depositary or director of a company be removed and replaced (regulation 26);

  • appoint one or more competent persons to investigate and report on the affairs of the company and specified others (regulation 30).

EG 19.7.2RP

1Factors that the FCA may take into account when it decides whether to use one or more of these powers include, but are not limited to, factors which are broadly similar to those in EG 14.1.1 in the context of AUTs or ACSs. However, the relevant conduct will be that of the ICVC, the director or directors of the ICVC and its depositary. Another difference is that the FCA is also able to take disciplinary action against the ICVC itself since the ICVC will be an authorised person. When choosing which powers to use, the FCA will adopt an approach which is broadly similar to that described in EG 14.2 to 14.5.

EG 19.7.3RP

1The FCA will give a company a warning notice if it proposes to revoke the company’s authorisation and a decision notice if the decision to revoke the company’s authorisation is subsequently taken. The decisions to give a warning notice or a decision notice will be taken under executive procedures2. A person who receives a decision notice under the OEIC Regulations may refer the matter to the Tribunal.

EG 19.7.4RP

1Under the OEIC Regulations, the FCA may also use its disqualification powers against auditors who fail to comply with a duty imposed on them under FCA rules. The procedure which the FCA will follow when exercising its disqualification powers is set out in EG 15.