Introduction

Part

COLL Collective Investment Schemes

Chapter

Introduction

Printed on: 06/11/2024

Rulebook at: 01/10/2012

COLL 1

Introduction

COLL 1.1

Applications and purpose

01/12/2004

Application

COLL 1.1.1

(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;

(d) to the extent indicated, UK UCITS management companies operating EEA UCITS schemes.

(2) COLL 9 applies to operators of schemes that are recognised schemes and to those seeking to secure recognised status for such schemes.

(3) COLL 11.5 (Auditors) also applies to auditors of master UCITS and feeder UCITS which are UCITS schemes.

(4) This sourcebook also applies to EEA UCITS management companies of UCITS schemes to the extent required by the UCITS Directive.

01/07/2011

COLL 1.1.1A

This sourcebook does not apply to an incoming ECA provider acting as such.

01/11/2007

EEA territorial scope: compatibility with European law

COLL 1.1.1B

(1) The territorial scope of this sourcebook is modified to the extent necessary to be compatible with European law.

(2) This rule overrides every other rule in this sourcebook.

01/07/2011

EEA UCITS management companies of UCITS schemes

COLL 1.1.1C

An EEA UCITS management company that is providing collective portfolio management services for a UCITS scheme from a branch in the United Kingdom, or under the freedom to provide cross border services, is advised that where it operates a UCITS scheme as its designated management company, it meets the Glossary definition of an "ACD" of an ICVC or a "manager" of an AUT which in either case is a UCITS scheme. Such firms should be aware that provisions in this sourcebook that apply to an ACD or a manager of a UCITS scheme accordingly apply to them, unless otherwise indicated: see COLL 12.3 (EEA UCITS management companies) for further details.

01/07/2011

Purpose

COLL 1.1.2

(1) The general purpose of this sourcebook is to contribute to the FSA meeting its regulatory objective of the protection of consumers. It provides a regime of product regulation for authorised funds, which sets appropriate standards of protection for investors by specifying a number of features of those products and how they are to be operated.

(2) In addition, this sourcebook implements part of the requirements of the UCITS Directive to meet EU law obligations relevant to authorised funds and management companies, with other requirements implemented in other parts of the Handbook.

01/07/2011

UCITS management company and product passport

COLL 1.1.2A

COLL 12 provides for the application of COLL in relation to the management company passport under the UCITS Directive. It explains how the passporting regime applies to both UK UCITS management companies and EEA UCITS management companies when providing collective portfolio management services on a cross-border basis. It also explains how the product passport (for UCITS) operates and how UCITS schemes may be marketed in other EEA States.

01/07/2011

The Collective Investment Schemes Information Guide

COLL 1.1.3

The Collective Investment Schemes Information Guide COLLG provides some general background material on the regulatory structure surrounding scheme regulation in the UK.

01/04/2004

COLL 1.2

Types of authorised fund

01/12/2004

Types of authorised fund

COLL 1.2.1

An application for an authorisation order must propose that the scheme be one of the following types:

(1) a UCITS scheme;

(2) a non-UCITS retail scheme, including:

(a) a non-UCITS retail scheme operating as a fund of alternative investment funds (FAIF); and

(b) a non-UCITS retail scheme which is an umbrella with sub-funds operating as:

(i) FAIFs;

(ii) standard non-UCITS retail schemes; or

(iii) a mixture of (i) and (ii); or

(3) a qualified investor scheme.

27/04/2012

Umbrella schemes

COLL 1.2.1A

Any authorised fund may be structured as an umbrella with separate sub-funds.

[Note: article 1(2) second paragraph of the UCITS Directive]

01/07/2011

Types of authorised fund - explanation

COLL 1.2.2

(1) UCITS schemes have to comply with the conditions necessary in order to enjoy the rights available under the UCITS Directive. Such schemes must in particular comply with:

(a) COLL 3.2.8 R (UCITS obligations); and

(b) the investment and borrowing powers rules for UCITS schemes set out in COLL 5.2 to COLL 5.5.

(2) Non-UCITS retail schemes are schemes that do not comply with all the conditions set out in the UCITS Directive. Such schemes could become UCITS schemes provided they are changed, so as to comply with the conditions set out in the UCITS Directive. Non-UCITS retail schemes operating as FAIFs have wider powers to invest in collective investment schemes than other non-UCITS retail schemes.

(2A) A non-UCITS retail scheme may also be structured as an umbrella with sub-funds operating as:

(a) FAIFs;

(b) standard non-UCITS retail schemes; or

(c) a mixture of (a) and (b).

In these cases, rules relating to investment powers and borrowing limits apply to each sub-fund as they would to a scheme.

(3) Qualified investor schemes may only be promoted to professional investors on the same terms as unregulated collective investment schemes. Such schemes could change to become non-UCITS retail schemes or UCITS schemes.

(4) The changes referred to in (2) and (3) require approval by the FSA and further information on that process is provided in COLLG 3.1.5 G (Notification of changes to unit trusts (section 251)) and COLLG 4.1.3 G (Notification of changes to ICVCs (Regulation 21)).

27/04/2012

UCITS schemes

COLL 1.2.3

A UCITS scheme is deemed to be established in the United Kingdom, irrespective of whether it has been established under the laws of England and Wales, Scotland or Northern Ireland.

[Note: article 4 of the UCITS Directive]

01/07/2011

Master UCITS

COLL 1.2.4

A master UCITS that has two or more feeder UCITS as its only unitholders satisfies the requirement that a UCITS scheme must invest capital raised from the public.

[Note: article 58(4) of the UCITS Directive]

01/07/2011