PART 1U.K.PRELIMINARY PROVISIONS AND INTERPRETATION

InterpretationU.K.

Definition of “authorised investment funds”U.K.

3.  In these Regulations “authorised investment funds” means—

(a)open-ended investment companies, and

(b)authorised unit trust schemes.

Definition of “open-ended investment company”U.K.

4.  In these Regulations “open-ended investment company” means a company incorporated in the United Kingdom to which section 236 of FISMA 2000 M1 applies.

Interpretation of expressions relating to authorised unit trust schemesU.K.

5.—(1) In these Regulations “unit trust scheme” has the meaning given by section 237 of FISMA 2000.

(2) For the purposes of these Regulations a unit trust scheme is authorised in relation to an accounting period if an order under section 243 of FISMA 2000 is in force in relation to that scheme during the whole or part of that accounting period.

(3) In these Regulations “unit holder” means a person entitled to a share of the investments subject to the trusts of a unit trust scheme.

Further definitions generally relevant for authorised investment fundsU.K.

6.—(1) In these Regulations the “legal owner” means—

(a)in relation to an open-ended investment company, the open-ended investment company, and

(b)in relation to an authorised unit trust, the trustees of the trust.

(2) In these Regulations the “scheme property” means—

(a)in relation to an open-ended investment company, the property subject to the collective investment scheme constituted by the company, and

(b)in relation to an authorised unit trust, the property subject to the collective investment scheme constituted by the trust.

(3) In these Regulations the “manager” means—

(a)in relation to an open-ended investment company, the authorised corporate director, and

(b)in relation to an authorised unit trust, the person who is the manager of the trust for the purposes of Chapter 3 of Part 17 of FISMA 2000 (authorised unit trust schemes).

(4) In these Regulations, unless a contrary intention appears, “units” means the rights or interests (however described) of the participants in the authorised investment fund.

(5) In these Regulations “accumulation unit” means—

(a)in relation to an open-ended investment company, a share in the company in respect of which income is credited periodically to the capital part of the scheme property of the company, and

(b)in relation to an authorised unit trust, a unit in the trust in respect of which income is credited periodically to the capital part of the scheme property of the trust.

(6) In these Regulations a “participant”, in relation to an authorised investment fund, means a beneficial owner of units in the fund, except where the units are held on trust (other than a bare trust) or are comprised in the estate of a deceased person, and in such a case the participant, in relation to the fund, means the trustees of the trust, or, as the case may be, the deceased's personal representatives.

[F1(7) In these Regulations “instrument constituting the fund” means—

(a)in relation to an open-ended investment company, the instrument of incorporation, and

(b)in relation to an authorised unit trust scheme, the trust deed.

(8) In these Regulations “genuine diversity of ownership condition” has the meaning given by regulation 9A.]

Umbrella companies and umbrella schemes: interpretationU.K.

7.—(1) In these Regulations “umbrella company” has the meaning given by section 468A(4) of ICTA M2, and a reference to a part of an umbrella company is to be construed in accordance with that provision.

(2) For the purposes of these Regulations each of the parts of an umbrella company is regarded as an open-ended investment company and the umbrella company as a whole shall not be so regarded.

(3) In relation to a part of an umbrella company, any reference—

(a)to investments or to scheme property of an open-ended investment company has effect as a reference to such of the investments or to such of the scheme property as under the arrangements form part of the separate pool to which that part of the umbrella company relates, and

(b)a person for the time being having rights in that part is regarded as the owner of shares in the open-ended investment company which that part is regarded as being by virtue of paragraph (2), and not as the owner of shares in the umbrella company itself.

(4) In relation to a part of an umbrella company, any references in these Regulations to the instrument of incorporation or the prospectus in issue for the time being F2... of an open-ended investment company have effect, for the purposes of these Regulations, as references to such parts of the instrument of incorporation or of that prospectus F2... as apply to that part of the umbrella company.

(5) In these Regulations “umbrella scheme” has the meaning given by section 468(8) of ICTA, and a reference to a part of an umbrella scheme is to be construed in accordance with that provision.

(6) For the purposes of these Regulations each of the parts of an umbrella scheme is regarded as an authorised unit trust and the umbrella scheme as a whole is not regarded as an authorised unit trust or as any other form of collective investment scheme.

(7) In relation to a part of an umbrella scheme, any reference—

(a)to investments or to scheme property subject to the trusts of an authorised unit trust has effect as a reference to such of the investments or to such of the scheme property as under the arrangements form part of the separate pool to which that part of the umbrella scheme relates, and

(b)to a unit holder, has effect as a reference to a person for the time being having rights in that separate pool.

(8) In relation to a part of an umbrella scheme, any references in these Regulations to the prospectus in issue for the time being F3... of an authorised unit trust have effect, for the purposes of these Regulations, as references to such parts of that prospectus F3... as apply to that part of the umbrella scheme.

General interpretationU.K.

8.  In these Regulations—

[F4“appropriate regulator” in relation to a person means—

“authorised corporate director”, in relation to an open-ended investment company, means a corporate director of the company acting in the capacity as the director having responsibility for the management of its scheme property, being an authorised person within the meaning given by section 31(2) of FISMA 2000, or if there is no such director, the person for the time being having responsibility for the management of the scheme property of the company and acting in that capacity;

“collective investment scheme” has the meaning given by section 235 of FISMA 2000;

the “Commissioners” means the Commissioners for Revenue and Customs;

[F5“connected person” has the meaning given in—

“creditor relationship” has the meaning given by section 103(1) of FA 1996 M3;

“derivative contract” means—

“investments” do not include cash awaiting investment;

“net asset value” means the value of the assets of the authorised investment fund, after the deduction of specified liabilities;

[F6“non-reporting fund” has the same meaning as in regulation 4(2) of the Offshore Funds Regulations;]

[F6“offshore fund” means a fund within the meaning of section 355 of the Taxation (International and Other Provisions) Act 2010;]

[F6“Offshore Funds Regulations” means the Offshore Funds (Tax) Regulations 2009;]

“owner of shares”, in relation to an open-ended investment company, means a beneficial owner of shares in the company, except where the shares are held on trust (other than a bare trust) or are comprised in the estate of a deceased person, and in such a case the owner of shares, in relation to the company, means the trustees of the trust, or, as the case may be, the deceased's personal representatives;

[F7“prospectus” includes a proposed prospectus, supplements to a prospectus and supplements to a proposed prospectus;]

[F8“reportable income” has the same meaning as in Chapter 5 of Part 3 of the Offshore Funds Regulations;]

“reporting date” means the final day of each annual and each half-yearly accounting period of the authorised investment fund;

[F9“reporting fund” means an offshore fund to which Part 3 of the Offshore Funds Regulations applies]

“residence declaration” is to be construed in accordance with regulation 31;

[F7“Statement of Recommended Practice” means, in relation to any accounting period for which it is required or permitted to be used, the Statement of Recommended Practice relating to authorised investment funds issued by the Investment Management Association in November 2008;]

“tax year”—

[F10“tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.]

Abbreviations and general indexU.K.

9.—(1) The Schedule to these Regulations (which contains abbreviations and defined expressions that apply for the purposes of these Regulations) has effect.

(2) Part 1 of the Schedule gives the meaning of the abbreviated references to Acts used in these Regulations.

(3) Part 2 of the Schedule lists the places where expressions used in these Regulations are defined or otherwise explained—

(a)in these Regulations for the purposes of these Regulations, or

(b)in these Regulations for the purposes of a Part or Chapter of these Regulations.