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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

You are viewing the version of the document as on 2018-12-09.

Status: In this content, we have included all amendments made by EU exit-related instruments up to end September 2020. There will be more amendments to be made later this year, further to the September QCP.

LR 15.5 Transactions

LR 15.5.1R


Significant transactions

LR 15.5.2RRP

A closed-ended investment fund must comply with LR 10 (Significant transactions) and LR 5.63, except in relation to transactions that are executed in accordance with the scope of its published investment policy.

Transactions with related parties

LR 15.5.3GRP

LR 11 (Related party transactions) applies to a closed-ended investment fund.

LR 15.5.4RRP

In addition to the definition in LR 11.1.4 R a related party includes any investment manager of the closed-ended investment fund and any member of such investment manager's group.4

Additional exemption from related party requirements

LR 15.5.5RRP
  1. (1)

    LR 11.1.7 R to LR 11.1.11 R do not apply to an arrangement between a closed-ended investment fund and its investment manager or any member of that investment manager's group4 where the arrangement is such that each invests in or provides finance to an entity or asset and the investment or provision of finance is either:2

    1. (a)

      made at the same time and on substantially the same economic and financial terms; or2

    2. (b)

      referred to in the closed-ended investment fund's published investment policy; or2

    3. (c)

      made in accordance with a pre-existing agreement between the closed-ended investment fund and its investment manager.2

  2. (2)

    For the purposes of paragraph (1)(c), a pre-existing agreement is an agreement which was entered into at the time the investment manager was appointed.2