COLL 13
Operation of feeder NURS
COLL 13.1
Introduction
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Application
COLL 13.1.1
See Notes
This chapter applies to:
(3) the authorised
fund manager of a UCITS scheme or non-UCITS retail scheme which operates as
a qualifying master scheme to
a feeder NURS; and
(4) (in the case of COLL 13.2.6 R (Inducements)
only) any person acting on behalf
of either the feeder NURS or
the authorised fund manager of
the feeder NURS.
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Purpose
COLL 13.1.2
See Notes
This chapter sets out various obligations,
additional to those found elsewhere in the Handbook,
that persons listed in COLL 13.1.1 R must comply with in relation to the operation of a feeder NURS and its qualifying
master scheme.
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COLL 13.2
Operational requirements for feeder NURS
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Application
COLL 13.2.1
See Notes
This section applies as follows:
(2)
COLL 13.2.6 R also
applies to:
(b) any person acting
on behalf of either the feeder NURS or
the authorised fund manager of
the feeder NURS; and
(3)
COLL 13.2.7 R applies
to the authorised fund manager of
a UCITS scheme or a non-UCITS retail scheme which operates as
a qualifying master scheme to
a feeder NURS.
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Pre-investment requirements of the authorised fund manager of a feeder NURS
COLL 13.2.2
See Notes
Before investing in the qualifying master scheme, the authorised fund manager of the feeder NURS must:
(1) be satisfied on reasonable grounds
that the authorised fund manager can
obtain from the qualifying master scheme all
the information necessary to comply on an ongoing basis with the rules in COLL;
(2) having consulted with the depositary of the feeder
NURS, be satisfied on reasonable grounds that the depositary of the feeder
NURS can obtain from the qualifying
master scheme, the operator of
the qualifying master scheme or
the depositary of the qualifying master scheme all the information
necessary to comply with its duties under COLL
6.6.4 R (General duties
of the depositary); and
(3) where the qualifying
master scheme is a UCITS scheme or
a non-UCITS retail scheme, inform
the authorised fund manager of
the qualifying master scheme of
the date on which the feeder NURS will
begin to invest into the qualifying master
scheme as a feeder NURS.
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Ownership of units in a feeder NURS
COLL 13.2.3
See Notes
The authorised
fund manager of a feeder NURS must
take reasonable care to ensure that its units are
not owned, including beneficially owned, by the qualifying
master scheme.
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Charges made by the qualifying master scheme or its operator to a feeder NURS on investment or disposal
COLL 13.2.4
See Notes
(1) Where the operator of
a qualifying master scheme or
the authorised fund manager of
a qualifying master scheme imposes
any charge which is, or is equivalent in effect to, a preliminary
charge or redemption charge on
the feeder NURS for the acquisition
or disposal of units in the qualifying master scheme, the authorised fund manager of the feeder NURS must pay to the feeder NURS an amount equal to such charge within four business
days following the relevant acquisition or disposal.
(2) In this rule,
where the operator of a qualifying master scheme or authorised fund manager of a qualifying master scheme requires any addition
to or deduction from the consideration paid on the acquisition or disposal
of units in the qualifying master scheme which is, or is
equivalent in effect to, a dilution levy made
in accordance with COLL
6.3.8 R (Dilution) or SDRT
provision made in accordance with COLL
6.3.7 R (SDRT Provision),
it is to be treated as part of the price of
the units and not as part of
any preliminary charge or redemption charge referred to in (1).
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Avoidance of opportunities for market timing
COLL 13.2.5
See Notes
The authorised fund manager of a feeder NURS must take appropriate measures to co-ordinate the timing of the feeder NURS' net asset value calculation and publication with those of its qualifying master scheme, including the publication of dealing prices, in order to avoid market timing of their units, and prevent arbitrage opportunities.
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Inducements
COLL 13.2.6
See Notes
Where, in connection with an investment
in the units of the qualifying master scheme, a distribution
fee, commission or other monetary benefit is received by:
(1) a feeder
NURS; or
(3) any person acting
on behalf of (1) or (2);
that fee, commission or other monetary benefit must be paid into the scheme property of the feeder NURS within four business days of receipt of that fee, commission or other monetary benefit.
that fee, commission or other monetary benefit must be paid into the scheme property of the feeder NURS within four business days of receipt of that fee, commission or other monetary benefit.
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Obligations to unitholders of a qualifying master scheme
COLL 13.2.7
See Notes
Where the qualifying
master scheme is a UCITS scheme or
a non-UCITS retail scheme, the authorised fund manager of the qualifying master scheme must not, if it
would unfairly prejudice the interests of unitholders of
the qualifying master scheme other
than the feeder NURS, provide
or make available information to the authorised
fund manager of the feeder
NURS without at the same time also providing or making available
that information to the unitholders of
the qualifying master scheme other
than the feeder NURS.
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