- (1) is an AUT, an ACS or an ICVC:
- (a) with the sole object of collective investment of capital raised from the public in transferable securities or other liquid financial assets specified in paragraph (2), and operating on the principle of risk-spreading;
- (b) with units which are, at the request of holders, repurchased or redeemed, directly or indirectly, out of those undertakings’ assets (see also paragraph (3)); and
- (2) The transferable securities or other liquid financial assets specified for the purposes of paragraph (1)(a) are those which are permitted by COLL 5.2.
- (3) For the purposes of paragraph (1)(b), action taken by the undertaking to ensure that the price of its units on an investment exchange do not significantly vary from their net asset value is to be regarded as equivalent to such repurchase or redemption.
- (4) The following undertakings are not a UK UCITS:
- (a) a collective investment undertaking of the closed-ended type;
- (b) a collective investment undertaking which raises capital without promoting the sale of its units to the public in the UK;