Related provisions for SUP App 3.3.8
1 - 20 of 276 items.
(1) 3(a) An authorised fund manager of a UCITS scheme 6 must use a risk management process enabling it to monitor and measure at any time the risk of the scheme's positions and their contribution to the overall risk profile of the scheme.3(b) In particular, an authorised fund manager of a UCITS scheme 6 must not solely or mechanistically rely on credit ratings issued by credit rating agencies, as defined in article 3(1)(b) of Regulation (EC) No 1060/2009 of the European Parliament
5An authorised fund manager 6 subject to COLL 6.12.3R(2) must notify the FCA of the information specified in points (a) and (b) of that rule:(1) annually, within 30 business days of 31 October, with information that is accurate as of 31 October of that year;(2) using the form in COLL 6 Annex 2R; and(3) by submitting it:(a) online through the appropriate systems accessible from the FCA’s website; or(b) if the appropriate systems are unavailable, via email to fundsupervision@fca.org.uk.
(1) 5In addition, an authorised fund manager 6 subject to COLL 6.12.3R(2) should submit a notification to the FCA if there has been a significant change to the fund’s risk profile since its last report, by sending the form in COLL 6 Annex 2R, completed as applicable, to fundsupervision@fca.org.uk.(2) A significant change to the fund’s risk profile could include, but is not limited to:(a) the first use of derivatives for investment purposes, if derivatives have previously been
(1) The risk management process in COLL 6.12.3 R should take account of the investment objectives and policy of the scheme as stated in the most recent prospectus.(2) The depositary of a UCITS scheme should take reasonable care to review the appropriateness of the risk management process in line with its duties under COLL 6.6.4 R (General duties of the depositary) and COLL 6.6.14 R (Duties of the depositary and authorised fund manager: investment and borrowing powers), as appropriate.
(1) An authorised fund manager of a UCITS scheme 6 must establish, implement and maintain an adequate and documented risk management policy for identifying the risks to which that scheme is or might be exposed.(2) The risk management policy must comprise such procedures as are necessary to enable the authorised fund manager 6 to assess the exposure of each UCITS it manages to market risk, liquidity risk and counterparty risk, and to all other risks, including operational risk,
(1) An authorised fund manager of a UCITS scheme 6 must assess, monitor and periodically review:(a) the adequacy and effectiveness of the risk management policy and of the arrangements, processes and techniques referred to in COLL 6.12.5 R;(b) the level of compliance by the authorised fund manager 6 with the risk management policy and with those arrangements, processes and techniques referred to in COLL 6.12.5 R; and(c) the adequacy and effectiveness of measures taken to address
(1) An authorised fund manager of a UCITS scheme 6 must adopt adequate and effective arrangements, processes and techniques in order to:(a) measure and manage at any time the risks to which that UCITS is or might be exposed; and(b) ensure compliance with limits concerning global exposure and counterparty risk, in accordance with COLL 5.2.11B R (Counterparty risk and issuer concentration) and COLL 5.3 (Derivative exposure).(2) For the purposes of (1), the authorised fund manager
(1) An authorised fund manager 6 must employ an appropriate liquidity risk management process in order to ensure that each UCITS it manages is able to comply at any time with COLL 6.2.16 R (Sale and redemption)6.(2) Where appropriate, the authorised fund manager 6 must conduct stress tests to enable it to assess the liquidity risk of the UCITS under exceptional circumstances.[Note: article 40(3) of the UCITS implementing Directive]
When the competent authorities of a third country which apply supervisory and regulatory arrangements at least equivalent to those applied in the UK10 assign a risk weight which is lower than that indicated in BIPRU 3.4.1 R to BIPRU 3.4.3 R to exposures to their central government and central bank denominated and funded in the domestic currency, a firm may risk weight such exposures in the same manner.[Note: BCD Annex VI Part 1 point 5]
When competent authorities of a third country jurisdiction which apply supervisory and regulatory arrangements at least equivalent to those applied in the UK10 treat exposures to regional governments and local authorities as exposures to their central government, a firm may risk weightexposures to such regional governments and local authorities in the same manner.[Note: BCD Annex VI Part 1 point 11]
When competent authorities of a third country jurisdiction, which apply supervisory and regulatory arrangements at least equivalent to those applied in the UK10, treat exposures to public sector entities as exposures to institutions, a firm may risk weightexposures to the relevant public sector entities in the same manner.[Note: BCD Annex VI Part 1 point 17]
(1) [deleted]10(2) When the competent authority of a third country which applies supervisory and regulatory arrangements at least equivalent to those applied in the EEA assigns to an exposure to an institution formed under the law of that third country of a residual maturity of 3 months or less denominated and funded in the national currency a risk weight that is one category less favourable than the preferential risk weight, as described in BIPRU 3.4.6 R (Exposures in the national
The property must be valued by an independent valuer at or less than the market value. In the UK where10 rigorous criteria for the assessment of the mortgage lending value exist10 in statutory or regulatory provisions 10property may instead be valued by an independent valuer at or less than the mortgage lending value.[Note: BCD Annex VIII Part 3 point 62]
(1) Covered bonds means covered bonds as defined in the definition in the Glossary10 and collateralised by any of the following eligible assets:(a) exposures to or guaranteed by the UK central government, the Bank of England,10public sector entities, regional governments and local authorities in the UK10;(b) (i) exposures to or guaranteed by non-UK10 central governments, non-UK10central banks, multilateral development banks, international organisations that qualify for the credit
Where BIPRU 3.4.116 R does not apply, a firm may determine the risk weight for a CIU as set out in BIPRU 3.4.123 R to BIPRU 3.4.125 R, if the following eligibility criteria are met:(1) one of the following conditions is satisfied:(a) the CIU is managed by a company which is subject to supervision in the UK10; or(b) the following conditions are satisfied:(i) the CIU is managed by a company which is subject to supervision that is equivalent to that laid down in UK10 law; and55(ii)
A contract is only a regulated mortgage contract if the land is:544(1) in relation to a contract entered into before IP completion day6, land in the United Kingdom or [, if the contract was entered into on or or after 21 March 2016,] within the territory of an EEA State; and5(2) in relation to a contract entered into on or after IP completion day6, land in the United Kingdom,5 (see PERG 4.4.5 G (Land5)).44
For the purposes of regulated mortgage activities, sections 418(4), (5), 5and (6) are relevant, as follows:(1) [deleted]544(2) Section 418(4) refers to the case where a UK-based person carries on a regulated activity and the day-to-day management of the activity is the responsibility of an establishment in the United Kingdom.(3) Section 418(5) refers to the case where a regulated activity is carried on by a person who is not based in the United Kingdom but is carried on from an
Simplified summary of the territorial scope of the regulated mortgage activities for contracts entered into on or after IP completion day65, to be read in conjunction with the rest of this section.
[Note: readers wishing to understand the territorial scope of the regulated mortgage activities for contracts entered into before IP completion day6 may wish to refer to the version of this guidance as at the date on which the relevant contract was entered into.]5
This table belongs to PERG 4.11.8 G
Individual borrower resident and located: |
|||
in the United Kingdom |
outside the United Kingdom |
||
Service provider carrying on regulated activity from establishment in the United Kingdom |
land in the United Kingdom |
Yes |
Yes |
land outside the United Kingdom |
No |
No |
|
Service provider carrying on regulated activity from establishment outside the United Kingdom |
land in the United Kingdom |
Yes |
No |
land outside the United Kingdom |
No |
No |
|
Yes = authorisation or exemption required No = authorisation or exemption not required |
|||
When a person is arranging (bringing about) regulated mortgage contracts or making arrangements with a view to regulated mortgage contracts from overseas, the question of whether he will be carrying on regulated activities in the United Kingdom will depend on the relevant circumstances. In the FCA's view, factors to consider include:(1) the territorial limitation in the definition of regulated mortgage contract so that regulation only applies if the land is in the United Kingdom5;44(2)
In the FCA's view, in circumstances other than those excluded by article 72(5D) of the Regulated Activities Order, the need for an overseas lender to be authorised or to have an exemption will depend on the location of the land.4 This is because of:4(1) the territorial limitation in the definition of regulated mortgage contract so that regulation applies only if the land is in the United Kingdom5;44(2) the general principle and practice that contracts relating to land are usually
In the FCA's view, in circumstances other than those excluded by article 72(5E) of the Regulated Activities Order, the need for an overseas administrator to be authorised or to have an exemption will depend on the location of the land.4 This is because:4(1) the territorial limitation in the definition of regulated mortgage contract means that regulation applies only if the land is in the United Kingdom5;44(2) when administrators notify borrowers resident in the United Kingdom5
Under the Treaty, the freedom to provide services within the EC may be exercised in three broad ways:(1) where the provider of a service moves temporarily to another EEA State in order to provide the service;(2) where the service is provided without either the provider or the recipient moving (in this situation the provision, and receipt, of the service may take place by post, telephone or fax, through computer terminals or by other means of remote control);(3) where the recipient
In the opinion of the European Commission (and in the wording of the Single Market Directives) "only activities carried on within the territory of another Member State should be the subject of prior notification" (Commission interpretative communication: Freedom to provide services and the interests of the general good in the Second Banking Directive (97/C 209/04)). In determining, for the purposes of notification, whether a service is to be provided 'within' another EEA State,
An insurance undertaking that effects contracts of insurance covering risks or commitments situated in another EEA State should comply with the notification procedures for the provision of services within that EEA State. The location of risks and commitments is found by reference to the rules set out in paragraph 6 of schedule 12 to the Act, which derive from article 13(13) and (14) of the Solvency II Directive.4 It may be appropriate for insurers to take legal advice as to how
The FCA is5 of the opinion that UK firms that are credit institutions and MiFID investment firms2 should apply the 'characteristic performance' test (as referred to in SUP App 3.6.7 G) when considering whether prior notification is required for services business. Firms should note that other EEA States may take a different view. Some EEA States may apply a solicitation test. This is a test as to whether it is the consumer or the provider that initiates the business relations
Where, however, a credit institution or MiFID investment firm:22(1) intends to send a member of staff or a temporarily authorised intermediary to the territory of another EEA State on a temporary basis to provide financial services; or(2) provides advice, of the type that requires notification under either MiFID or the Banking Consolidation Directive2, to customers in another EEA State;2 the firm should make a prior notification under the freedom to provide services.
The key distinction in relation to temporary activities is whether a firm should make its notification under the freedom of establishment in a Host State, or whether it should notify under the freedom to provide services into a Host State. It would be inappropriate to discuss such a complex issue in guidance of this nature. It is recommended that, where a firm is unclear on the distinction, it should seek appropriate advice. In either case, where a firm is carrying on activities
The FCA considers5 that, in order to comply with Principle 3:Management and control (see PRIN 2.1.1 R), a firm should have appropriate procedures to monitor the nature of the services provided to its customers. Where a UK firm has non-resident customers but has not notified the EEA State in which the customers are resident that it wishes to exercise its freedom to provide services, the FCA5 would expect the firm's systems to include appropriate controls. Such controls would
(1) 2The FCA is5 of the opinion that where a UK firm becomes a member of:66(a) a regulated market that has its registered office or, if it has no registered office, its head office, in another EEA State; or(b) an MTF or OTF5 operated by a MiFID investment firm or a market operator in another EEA State,2the same principles as in the 'characteristic performance' test should apply. Under this test, the fact that a UK firm has a screen displaying the regulated market's or the MTF's
(1) An authorised fund manager of a UCITS scheme2must ensure, for each portfolio transaction relating to a scheme it manages, that a record of information which is sufficient to reconstruct the details of the order and the executed transaction is produced without delay.(2) The record referred to in (1) must include:(a) the name or other designation of the scheme and of the person acting on behalf of the scheme;(b) the details necessary to identify the instrument in question;(c)
(1) An authorised fund manager of a UCITS scheme 2 must take all reasonable steps to ensure that every subscription and redemption order it receives relating to units in any such scheme it manages are centralised and recorded immediately after receipt of that order.(2) The record referred to in (1) must include information on the following:(a) the relevant scheme;(b) the person giving or transmitting the order;(c) the person receiving the order;(d) the date and time of the order;(e)
(1) An authorised fund manager of a UCITS scheme2must ensure the retention of the records referred to in COLL 6.13.2 R and COLL 6.13.3 R for a period of at least five years or, in exceptional circumstances and where directed by the FCA, for a longer period, determined by the nature of the instrument or portfolio transaction, where it is necessary to enable the FCA to exercise its supervisory functions in respect of UCITS schemes2.(2) Following the termination of its authorisation,
An authorised fund manager of a UCITS scheme2must make appropriate arrangements for suitable electronic systems so as to permit a timely and proper recording of each portfolio transaction or subscription or redemption order, in order to be able to comply with COLL 6.13.2 R (Recording of portfolio transactions) and COLL 6.13.3 R (Recording of subscription and redemption orders).[Note: article 7(1) of the UCITS implementing Directive]
This section applies to an EEA UCITS management company that provides collective portfolio management services in the United Kingdom by acting as the authorised fund manager1 of an AUT, ACS1 or ICVC which is a UCITS scheme, either by establishing a branch or under the freedom to provide cross border services.11
(1) An EEA UCITS management company may be the authorised fund manager1 of an AUT or ACS,1 or the ACD of an ICVC, that is a UCITS scheme (see SUP 13A (Qualifying for authorisation under the Act)).1(2) An EEA UCITS management company that acts as the authorised fund manager1 of an AUT or ACS,1 or the ACD of an ICVC, that is a UCITS scheme may conduct its business from a branch in the United Kingdom or under the freedom to provide cross border services (without establishing a branch
(1) An EEA UCITS management company which applies to manage a UCITS scheme under paragraph 15A(1) of Schedule 3 to the Act must provide the FCA with the following documents:(a) the written contract3 that has been entered into with the depositary3 of the scheme, as referred to in article 22(2) of the UCITS Directive3; (b) information on any delegation arrangements it has made regarding the functions of investment management and administration, as referred to in Annex II of the
An EEA UCITS management company that manages a UCITS scheme must comply with the rules of the FCAHandbook which relate to the constitution and functioning of the UCITS scheme (the fund application rules), as follows:(1) the setting up and authorisation of the UCITS scheme (COLL 1 (Introduction), COLL 2 (Authorised fund applications), COLL 3 (Constitution), COLL 6.5 (Appointment and replacement of the authorised fund manager and the depositary), COLL 6.6 (Powers and duties of
(1) An EEA UCITS management company that manages a UCITS scheme must establish appropriate procedures and arrangements to make information available at the request of the public or the FCA.(2) The EEA UCITS management company must ensure that the procedures and arrangements it establishes in accordance with (1), enable the FCA to obtain any information it requests directly from the management company.[Note: article 15 second paragraph and article 21(2) third paragraph, of the
An EEA UCITS management company that operates a UCITS scheme is advised that in particular it needs to comply with:(1) COLL 6.6.3 R (Functions of the authorised fund manager) requiring it to fulfil the obligations placed on it by the instrument constituting the fund2 and the prospectus of that scheme;2(2) Dispute resolution: Complaints sourcebook (DISP - see DISP 1 Annex 2 G for a summary of the relevant requirements that apply, which include the complaints handling rules (under
(1) In addition to the requirements of this section, an EEA UCITS management company that provides collective portfolio management services from a branch in the United Kingdom must comply with the following rules that implement the requirements of article 14(1) of the UCITS Directive:(a) COLL 6.6A.2 R (Duties of AFMs of UCITS schemes and EEA UCITS schemes to act in the best interests of the scheme and its Unitholders);(b) COLL 6.6A.4 R (Due diligence requirements of AFMs of UCITS
An authorised fund manager of a UCITS scheme 23 must:(1) ensure that the unitholders of any such scheme it manages are treated fairly;(2) refrain from placing the interests of any group of unitholders above the interests of any other group of unitholders;(3) apply appropriate policies and procedures for preventing malpractices that might reasonably be expected to affect the stability and integrity of the market;(4) (a) ensure that fair, correct and transparent pricing models and
An authorised fund manager of a UCITS scheme 3 must:(1) ensure a high level of diligence in the selection and ongoing monitoring of scheme property, in the best interests of the scheme and the integrity of the market;(2) ensure it has adequate knowledge and understanding of the assets in which any scheme it manages is invested;(3) establish written policies and procedures on due diligence and implement effective arrangements for ensuring that investment decisions on behalf of
(1) An authorised fund manager of a UCITS scheme 3 must develop adequate and effective strategies for determining when and how voting rights attached to ownership of scheme property, 3are to be exercised, to the exclusive benefit of the scheme concerned.(2) The strategy referred to in (1) must determine measures and procedures for:(a) monitoring relevant corporate events;(b) ensuring that the exercise of voting rights is in accordance with the investment objectives and policy
2An authorised fund manager of a UCITS scheme3 must (for each scheme it manages) ensure that: (1) a single depositary is appointed; and (2) the assets of the UCITS scheme3 are entrusted to the depositary for safekeeping in accordance with COLL 6.6B.18R and COLL 6.6B.19R.3[Note: article 22(1) and (5) of the UCITS Directive]
A firmcontrolled by a parent financial holding company in the UK or a parent mixed financial holding company in the UK2 must comply with the obligations laid down in BIPRU 11.3 on the basis of the consolidated financial situation of that parent financial holding company in the UK or parent mixed financial holding company in the UK2.[Note: BCD Article 72(2)]11
A firm which is included within comparable disclosures provided on a consolidated basis by a parent undertaking whose head office is not in the UK2 may apply for a waiver from the relevant disclosure requirements in BIPRU 11.2.2 R - BIPRU 11.2.5 R. The appropriate regulator's approach to granting waivers is set out in the Supervision manual (see SUP 8).[Note: BCD Article 72(3)]
A firm applying for a waiver from one or more of the disclosure requirements in BIPRU 11.2.2 R - BIPRU 11.2.5 R will need to:(1) satisfy the appropriate regulator that it is included within comparable disclosures provided on a consolidated basis by a parent undertaking whose head office is not in the UK2; and(2) notify the appropriate regulator of the location where the comparable disclosures are provided.
A UK UCITS management company that operates an EEA UCITS scheme must in relation to that activity comply with the rules which relate to:(1) the organisation of the management company, including delegation arrangements;(2) risk-management procedures;(3) prudential rules and supervision;(4) operating conditions; and(5) reporting requirements.[Note: article 19(1) of the UCITS Directive]
A UK UCITS management company that operates an EEA UCITS scheme must decide and be responsible for adopting and implementing all the arrangements and organisational decisions that are necessary to ensure compliance with rules drawn up by the EEA State in which that scheme is established, in implementation of its obligations under articles 19(3) and 19(4) of the UCITS Directive.[Note: article 19(6) of the UCITS Directive]
(1) Each EEA State, including the United Kingdom, is required to implement article 14 of the UCITS Directive by drawing up rules of conduct which management companies authorised in that State must observe at all times, except as explained in (3).(2) UK UCITS management companies operating an EEA UCITS scheme under the freedom to provide cross border services (otherwise than by establishing a branch in that State) are advised that, as provided for elsewhere in the Handbook, they
(1) A UK UCITS management company which applies to operate an EEA UCITS scheme in another EEA State is advised that it must comply with the requirements of the Host State regulator regarding provision to them of the following documents:(a) the written contract1 it has entered into with the depositary1 of the EEA UCITS scheme, as referred to in article 22(2)1 of the UCITS Directive; and (b) information on delegation arrangements (if any), regarding functions of investment management
In giving its views, communications made by the European Commission have the status of guidance and are not binding on the national courts of EEA States. This is because it is the European Court of Justice that has ultimate responsibility for interpreting the Treaty and secondary legislation. Accordingly, the communications "do not prejudge the interpretation that the Court of Justice ...,4 which is responsible in the final instance for interpreting the Treaty and secondary legislation,
The E-Commerce Directive covers services provided at a distance by means of electronic equipment for the processing (including digital compression) and storage of data. The services would normally be provided in return for remuneration and must be provided at the individual request of a recipient (see recital 17 of the E-Commerce Directive). The Directive implements the country of origin approach to regulation. This approach makes firms subject to the conduct of business requirements
The E-Commerce Directive does not affect the responsibilities of Home State under the Single Market Directives. This includes the obligation of a Home State regulator to notify the Host State regulator of a firm's intention to establish a branch in, or provide cross border services into, the other EEA State.
There are, however, general derogations from the internal market provisions under article 3(3) of the E-Commerce Directive. The derogations include consumer contracts, the permissibility of unsolicited e-mail and certain insurance services (both life and non-life). Where these derogations apply, the EEA States in which the recipients of the service are based may continue to be able to impose their own requirements.
1The Single Market Directives require credit institutions, insurance undertakings (other than reinsurance undertakings)5, MiFID investment firms3, AIFMs, 7UCITS management companies,8insurance intermediaries and MCD credit intermediaries8 to make a notification to the Home State before establishing a branch or providing cross border services.SUP 13.5 (Notices of intention) sets out the notification requirements for a firm seeking to establish a branch or provide cross border services.
1Blanket notification is the practice of the Home State regulator notifying all Host State regulators in respect of all activities regardless of any genuine intention to carry on the activity. This practice is discouraged by the FCA and PRA11. However, a firm may be carrying on activities in the United Kingdom or elsewhere in a way that necessarily gives rise to a real possibility of the provision of services in other EEA States. In such cases, the firm should consider with its
Table: Firms to which SUP 16.23.1R applies (subject to the exclusions in SUP 16.23.1R).4
a UK bank; |
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a non-UK bank;2 |
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a mortgage administrator; or |
||
a firm offering life and annuity insurance products. |
||
4a firm that has permission to carry on one or more of the following activities: |
||
advising on investments, provided that during the relevant financial year the firm: |
||
(i) |
held client money under CASS 5 (Client money: insurance distribution activity) and/or CASS 7 (Client money rules); and/or |
|
(ii) |
held safe custody assets under CASS 6 (Custody rules); |
|
arranging (bringing about deals) in investments, provided that during the relevant financial year the firm: |
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(i) |
arranging (bringing about deals) in investments, provided that during the relevant financial year the firm: |
|
(ii) |
held safe custody assets under CASS 6 (Custody rules); |
|
assisting in the administration and performance of a contract of insurance in relation to non-investment insurance contracts; |
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establishing, operating or winding up a collective investment scheme; |
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establishing, operating or winding up a personal pension scheme; |
||
establishing, operating or winding up a stakeholder pension scheme; |
||
a firm that has reported total revenue of £5 million or more as at its last accounting reference date and has permission to carry on one or more of the following activities: |
||
Table Territorial issues relating to overseas insurance intermediaries carrying on insurance distribution activities5 in or into the United Kingdom
Needs Part 4A permission |
Overseas persons exclusion available |
||
Third country intermediary operating from branch in the UK |
Yes |
No |
|
Third country intermediary providing services in (or into) the UK |
Yes unless overseas persons exclusion applies |
Potentially available |
|
| 35 | |||
Section 418 of the Act extends the meaning that 'carry on regulated activity in the United Kingdom' would normally have by setting out additional cases in which a person who would not otherwise be regarded as carrying on the activity in the United Kingdom is to be regarded as doing so. Each of the following cases thus amounts to carrying on a regulated activity in the United Kingdom:(1) [deleted]6(2) where a UK-based person carries on a regulated activity and the day-to-day management
(1) The effect of COLL 7.7.1 R, and in particular the narrow Glossary definition of domestic UCITS merger6, is that this section will not apply to a merger in the United Kingdom between two or more UCITS schemes unless one of them was6 the subject of a UCITS marketing notification before IP completion day76.(2) [deleted]6
(1) The authorised fund manager of a UCITS scheme that is a merging UCITS or a receiving UCITS in a proposed UCITS merger, must in conjunction with any other authorised fund manager 6draw up common draft terms of the proposed UCITS merger.(2) The common draft terms in (1) must set out the following particulars:(a) 6the UCITS involved;(b) the background to and the rationale for the proposed UCITS merger;(c) the expected impact of the proposed UCITS merger on the unitholders of
(1) The authorised fund manager of a UCITS scheme that is a merging UCITS or a receiving UCITS in a proposed UCITS merger must ensure that a document containing appropriate and accurate information on the merger is provided to the unitholders of that scheme so as to enable them to:(a) make an informed judgment about the impact of the proposal on their investment;(b) exercise their rights under regulation 12 (Right of redemption) of the UCITS Regulations 2011; and(c) where applicable,
(1) The information document that must be provided to unitholders under COLL 7.7.10 R (Information to be given to unitholders) by the authorised fund manager of a UCITS scheme must be written in a concise manner and in non-technical language.(2) [deleted]6(3) The information to be provided to the unitholders of the merging UCITS must meet the needs of investors who have no prior knowledge of the features of the receiving UCITS or of the manner of its operation, drawing their attention
(1) The information provided to unitholders under COLL 7.7.10 R and COLL 7.7.13 R on any proposed merger should reflect the different needs of the unitholders of the merging UCITS and the receiving UCITS and assist their understanding of what is being proposed.(2) The reference to "conversion" in COLL 7.7.10 R (2) means an exchange of units in the merging UCITS or receiving UCITS for units in another UCITS scheme 6that has similar investment policies and that is managed by the
(1) [deleted]7668888(1A) [deleted]78(2) The7United Kingdom, the appropriate regulator8 will need to certify that the transferee will meet its solvency margin requirements after the transfer. If the appropriate regulator8 has required of a firm7 a “recovery plan” of the kind mentioned in the PRA Rulebook: Solvency II firms: Undertakings in Difficulty,6 the appropriate regulator8 will not issue a certificate for so long as it considers that policyholders' rights are threatened within
If the transferee is not (and will not be) authorised and will not be7 a Swiss general insurance company, then the appropriate regulator8 will need to consult the transferee's8 insurance supervisor in the place where the business is to be transferred. The appropriate regulator8 will need confirmation from this supervisor that the transferee will meet his solvency margin requirements there (if any) after the transfer.888
(1) A market is eligible for the purposes of the rules in this sourcebook if it is:(a) a regulated market;(b) a market in the United Kingdom or25 an EEA State which is regulated, operates regularly and is open to the public; or(c) any market within (2).(2) A market not falling within (1)(a) and (b) is eligible for the purposes of the rules in this sourcebook if:(a) the authorised fund manager, after consultation with and notification to the depositary (and in the case of an ICVC,
(1) 7A UCITS scheme may invest in an approved money-market instrument if it is:(a) issued or guaranteed by any one of the following:(i) a central authority of the United Kingdom or25 an EEA State or, if the EEA State is a federal state, one of the members making up the federation;(ii) a regional or local authority of the United Kingdom or25 an EEA State;(iii) the Bank of England,25 the European Central Bank or a central bank of an EEA State;(iv) the European Union or the European
(1) This rule applies in respect of a transferable security or an approved money-market instrument (“such securities”) that is issued by:21(a) the United Kingdom or 2521an EEA State;(b) 21a local authority of the United Kingdom or 25 an EEA State;(c) 21a non-EEA State; or(d) 21a public international body to which the UK or25 one or more EEA States belong.(2) Where no more than 35% in value of the scheme property is invested in such securities issued by any one body, there is no
A UCITS scheme must not invest in units in a collective investment scheme ("second scheme") unless the second scheme satisfies all of the following conditions, and provided that no more than 30% of the value of the UCITS scheme is invested in second schemes within (1)(b) to (e):88(1) the second scheme must:(a) be a UCITS scheme or25 satisfy the conditions necessary for it to enjoy the rights conferred by the UCITS Directive as implemented in the EEA25; or(b) be a recognised scheme1825
(1) COLL 9.3 gives further detail as to the recognition of a scheme under section 27218of the Act.18(2) A 25 scheme18 which has the power to invest in gold or immovables would not meet the criteria set out in COLL 5.2.13R (1).1813131818(3) 8In determining whether a scheme (other than a UCITS)18 meets the requirements of COLL 5.2.13AR25 for the purposes ofCOLL 5.2.13R (1),18 the authorised fund manager should consider the following factors before deciding that the scheme provides
(1) 13For the purposes of COLL 5.2.23 R (2), an authorised fund manager of a UCITS scheme 25 must:(a) establish, implement and maintain arrangements and procedures which ensure appropriate, transparent and fair valuation of the exposures of a UCITS scheme 25 to OTC derivatives; and(b) ensure that the fair value of OTC derivatives is subject to adequate, accurate and independent assessment.(2) Where the arrangements and procedures referred to in (1) involve the performance of certain
(1) 21Authorised fund managers of UCITS schemes 25 should bear in mind that where a UCITS scheme25 employs particular investment strategies such as those in (2)21, COBS 4.13.2R (Marketing communications relating to UCITS schemes25) and COBS 4.13.3R (Marketing communications relating to a feeder UCITS) contain additional disclosure requirements in relation to marketing communications that concern those investment strategies.(2) 21Examples of investment strategies that require these
1The application of this section is set out in the following table:
Type of firm |
Applicable provisions |
UK firm operating a multilateral trading facility or an OTF and a UK branch of a third country investment firm operating a multilateral trading facility or an OTF |
|
MAR 10.4.7D to MAR 10.4.9D and MAR 10.4.11G2 |
|
UK branch of a2third country investment firm when not operating a multilateral trading facility or an OTF |
MAR 10.4.7D to MAR 10.4.9D and MAR 10.4.11G2 |
Member, participant or a client of a UK trading venue |
|
(1) 1This direction applies to a member, participant or a client of a trading venue.
(2) A person in (1) must report to the relevant operator of a trading venue the details of their own positions held through contracts traded on that venue, at least on a daily basis, as well as those of their clients and the clients of those clients, until the end client is reached.
(3) [deleted]3
[Note: article 58(3) of MiFID]
(1) This sourcebook, except for COLL 9 (Recognised schemes), applies to:(a) investment companies with variable capital (ICVCs);(b) ACDs, other directors and depositaries of ICVCs;3(c) managers and trustees of authorised unit trust schemes (AUTs); and634(cA) authorised fund managers, depositaries and nominated partners of authorised contractual schemes (ACSs).64(d) [deleted]63(2) COLL 9 applies to operators of schemes that are recognised schemes and to those seeking to secure recognised
(1) The commencement of winding up of a UCITS scheme that is a master UCITS must take place no sooner than 3 months after a notification is made to its unitholders and the FCA3 informing it3 of the binding decision to wind up the master UCITS.(2) Paragraph (1) is without prejudice to any provision of the insolvency legislation in force in the United Kingdom regarding the compulsory liquidation of AUTs, ACSs1 or ICVCs.[Note: article 60(4) last sentence of the UCITS Directive]
Where the authorised fund manager of a UCITS scheme that is a feeder UCITS is notified that the master UCITS is to merge with another UCITS scheme or EEA UCITS scheme or divide into two or more such schemes, it must submit to the FCA the following:(1) where the authorised fund manager of the feeder UCITS intends it to continue to be a feeder UCITS of the same master UCITS:(a) its application under section 283A of the Act, for approval;(b) where applicable, a notice under section
(1) For the purposes of COLL 11.6.5R (1), a feeder UCITS will be considered as continuing to be a feeder UCITS of the same master UCITS where:(a) the master UCITS is the receiving UCITS in a proposed UCITS merger; or(b) the master UCITS is to continue materially unchanged as one of the resulting UCITS schemes or EEA UCITS schemes in a proposed division.(2) For the purposes of COLL 11.6.5R (2), a feeder UCITS will be considered as becoming a feeder UCITS of another master UCITS
Where the authorised fund manager of a feeder UCITS gives notice to the FCA under section 251 or section 261Q1 of the Act or regulation 21 of the OEIC Regulations that it intends to wind up the scheme, it must inform:(1) the unitholders of the feeder UCITS; and(2) where notice is given under COLL 11.6.5R (4) (Application for approval by a feeder UCITS where a master UCITS merges or divides), the authorised fund manager of the master UCITS;of its intention without undue delay.[Note: