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ENF 16.3 ICVCs

ENF 16.3.1G

Regulations for setting up, running and regulating ICVCs are contained in The Open-endedInvestmentCompanies Regulations 2001 (SI 2001/1228). The regulations include the following enforcement powers:

  1. (1)

    a power for the FSA to revoke authorisation of an ICVC (regulation 23);

  2. (2)

    a power for the FSA to give directions (regulation 25); and

  3. (3)

    a power for the FSA to apply to court for the removal of any director of an ICVC or its depositary (regulation 26).

ENF 16.3.2G

The grounds upon which the FSA may use its powers under regulations 23, 25 and 26 respectively are broadly similar to those upon which it may use its equivalent enforcement powers in relation to AUTs (see ENF 16.2.1 G to ENF 16.2.9 G).

ENF 16.3.3G

The FSA's normal disciplinary powers applicable to firms, including the powers to publish a public censure (see ENF 12) and to impose financial penalties (see ENF 13), are also available in relation to ICVCs.

Regulations 23, 25 and 26: the FSA's policy

ENF 16.3.4G

The factors the FSA 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 ENF 16.2.10 G in the context of AUTs. However, the relevant conduct will, of course, be that of the ICVC, the director or directors of the ICVC and its depositary (another difference is that the FSA is also able to take disciplinary action against the ICVC itself - see ENF 16.3.3 G). When choosing which powers to use, the FSA will adopt an approach which is broadly similar to that described in ENF 16.2.11 G to ENF 16.2.14 G.