HM Treasury Draft Regulations On Contractual Schemes For Collective Investments
HM Treasury has published a revised draft of the Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2012.
The original version of the draft Regulations was consulted on as part of HM Treasury's January 2012 consultation on proposals to introduce tax transparent contractual schemes for collective investment. The revised draft Regulations take account of comments made during the consultation process and further discussions with the FSA and expert advisory bodies.
The key revisions to the draft Regulations relate to the inclusion of additional provisions concerning the winding up of an insolvent co-ownership scheme or an insolvent sub-scheme of an umbrella co-ownership scheme (regulation 15 of Part 4, and the Schedules). These include provisions relating to the presentation of winding-up petitions by the depositary, the FSA or any creditor. It also includes the modification of applicable insolvency legislation, and steps to be taken by the operator if the participants are deemed unable to pay their debts. In this respect, HM Treasury has indicated that on-going revisions will have a particular focus on the insolvency provisions set out in the Schedules to the revised draft Regulations.
Another key revision concerns the transitional provisions regarding depositaries of authorised contractual schemes (regulation 17 of Part 5). A person who already has permission under Part IV of the Financial Services and Markets Act 2000 (FSMA) to act as trustee of an authorised unit trust scheme or as the depositary or sole director of an open-ended investment company (OEIC) will be treated as having permission to act as the depositary of an authorised contractual scheme, subject to providing the required notice to the FSA.
Comments on the revised regulations will be accepted until 3 September 2012 and those comments received will be taken into account by the government in its formal response to the consultation, which will be reflected in the final Regulations laid before Parliament.
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