Securities Markets Order, 2013 · As enacted · Part IX
229. Procedure for directions
Official textFrom Attorney General's Chambers, unchanged
A direction made under this Part takes effect
immediately, if the notice given states that that is the case; or
on such date as may be specified in the notice.
A direction may be expressed to take effect immediately (or on a specified date) only if the Authority, having regard to the ground on which it is exercising its powers, thinks that it is necessary for the direction to take effect immediately (or on a specified date).
If the Authority proposes to give a direction or gives such a direction with immediate effect, it must give a separate notice in writing to the operator and the custodian, as the case may be, of the collective investment scheme.
operator
"operator", of a collective investment' scheme, which is an investment company, means- {a) the licensed corporate director of that company which is the management company; {b) in relation to a unit trust, the management company; and {c) in relation to a partnership, the general partner.
The notice must -
(a} give details of the direction;
1399
{b)
inform the person to whom it is given of when the direction takes effect;
{c)
state the Authority's reasons for giving the direction and for its determination as to when the direction takes effect;
inform the person to whom it is given that he may make representations to the Authority within such period as may be specified in it
!whether or not he has referred the matter to the Panel); and
{e)
inform that person of the right to refer the matter to the Panel.
If, having considered any representations made by a person to whom the notice was given, the Authority decides-
{a)
to give the direction in the way proposed; or
{b) if it has been given, not to revoke the direction, it must give separate notice in writing to the operator and the custodian, as the case may be, of the collective investment scheme.
custodian
"custodian", in relation to any form of collective investment scheme, means any person to whom the property subject to the collective investment scheme is entrusted for safekeeping;
If, having considered any representations made by a person to whom the notice was given, the Authority decides-
{a)
not to give the direction in the way proposed;
{b)
to give the direction in a way other than that proposed; or
to revoke a direction which has effect, it must give separate notice in writing to the operator and the custodian, as the case may be, of the collective investment scheme.
The Panel has jurisdiction to hear and determine any appeal in relation to a decision made under this section.
Terms defined in this Act
collective investment scheme
Defined · s 203"collective investment scheme" means any investment arrangements with respect to assets of any description, including money, the purpose or effect of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition/ holding, management or disposal of the property or sums paid out of such profits or income. [2) The arrangements must be such that - (a) the persons who are to participate ("participants") do not have day-to-day control over the management of the property, whether or not they have the right to be consulted or to give directions; (b) the arrangements must also have either or both of the following characteristics - (i) the contributions of the participants and the profits or income out of which payments are to be made to them are pooled; (ii) the property is managed as a whole, by or on behalf of the operator of the collective investment scheme; and (c) the arrangements must satisfy the condition set out in subsection (3). (3) The condition referred to in subsection (2)(b) is that the property belongs beneficially to, and is managed by or on behalf of, a company, the trustee of a trust or some other entity or arrangement having as its purpose the investment of its funds with the aim of spreading the investment risk and giving its members the benefit of the results of the management of those funds for or on behalf of that company, trust, entity or arrangement. (4) If the arrangements referred to in subsection (2)(b)(i) provide for such pooling in relation to separate parts of the property, and each part is maintained in a portfolio segregated in the book of the scheme from the other assets of the scheme, the arrangements shall be regarded as constituting a single umbrella collective investment scheme provided that the participants are entitled to exchange rights in one part for rights in another. Operating without licence.
custodian
Defined · s 207"custodian", in relation to any form of collective investment scheme, means any person to whom the property subject to the collective investment scheme is entrusted for safekeeping;
operator
Defined · s 207"operator", of a collective investment' scheme, which is an investment company, means- {a) the licensed corporate director of that company which is the management company; {b) in relation to a unit trust, the management company; and {c) in relation to a partnership, the general partner.
Part X
Intervention Powers of Authority
Part XI
Complaints Committee and Investor Compensation Scheme
Part XII
Financial Markets Services Panel
Part XIII