Transitional Provisions and Schedules

Part

COLL New Collective Investment Schemes

Chapter

Transitional Provisions and Schedules

Printed on: 06/11/2024

Rulebook at: 01/01/2007

Transitional Provisions and Schedules

COLL TP 1

Transitional Provisions

COLL TP 1.1

(1)

(2)
Material to which the transitional provision applies

(3)

(4)
Transitional provision

(5)
Transitional provision: dates in force

(6)
Handbook provision: coming into force

Extra time provisions

Existing schemes electing to comply with COLL

Each and every rule in COLL

The rules in COLL do not apply to any relevant party in relation to an authorised fund in respect of which an application for an authorisation order was received by the FSA before 1 April 2004, unless the authorised fund manager of the scheme has exercised its right of election on behalf of the scheme to comply with COLL, instead of CIS, in accordance with CIS 1.1.1A R COLL (Right to elect to comply with).

From 1 April 2004 to 12 February 2007

1 April 2004

Each and every rule in COLL

The rules in COLL do not apply to any relevant party in relation to an authorised fund where the winding up of the fund has commenced before 12 February 2007, provided that each relevant party shall continue to comply with the provisions of CIS as if they still applied to them.

From 12 February 2007

12 February 2007

Each and every rule in COLL

The effect of transitional provision 1 is that the default position for the relevant parties of existing authorised funds (by which is meant authorised funds in respect of which the application for the authorisation order was received by the FSA before 1 April 2004) is that CIS continues to apply until 12 February 2007 unless the relevant authorised fund manager has exercised its right of election in accordance with CIS 1.1.1A R to comply with COLL, instead of CIS.

New schemes electing to comply with CIS

Each and every rule in COLL

(1) The authorised fund manager of an authorised fund whose authorisation order application was received by the FSA on or after 1 April 2004 may, with the consent of each of the other relevant parties:

From 1 April 2004 to 12 February 2007

1 April 2004

(a) elect to comply with CIS; and

(b) subsequently revoke such an election and elect to comply with COLL, in which case no further election is permitted for that fund.

(2) An election or revocation in (1) does not take effect unless the authorised fund manager has notified the FSA in writing of:

(a) the election or revocation; and

(b) the date from which it is to take effect.

(3) While an election in (1)(a) remains in effect, COLL does not apply to any relevant party in respect of the authorised fund. Instead, each relevant party must comply with CIS.

(4) The right of election referred to in (1) only applies in relation to an authorised fund which is a UCITS scheme, a money market scheme, a futures and options scheme, a geared futures and options scheme a property scheme, a feeder fund or a funds of funds scheme.
(5) The authorised fund manager must make a record of any election or revocation under (1), and retain it for a period of six years from the date it takes effect.

Each and every rule in COLL

(1) It is not necessary for the schemes referred to in transitional provision 3(4) initially to have complied with COLL, before an election is made on its behalf under transitional provision 3(1)(a) to comply with CIS.
(2) Note that while the FSA's permission is not required for an election under paragraph 3(1)(a) or a revised election under paragraph 3(1)(b), changes to the relevant instrument constituting the scheme and prospectus to give effect to such a revised election will require the FSA's written permission, as explained in CIS 16.1.11 G (Notification of proposed changes to ICVCs) and CIS 16.1.12 G (Notification of proposed changes to AUTs).

UCITS business restrictions

COLL 6.9.9 R (4) to (6) (Restrictions of business for UCITS management companies)

A UCITS management company must not carry on any of the activities specified in COLL 6.9.9 (4) COLL 6.9.9 (5) COLL 6.9.9 (6) COLL 6.9.9 R (4) to (6) (inclusive) unless it is a UCITS investment firm:

From 1 April 2004 to 12 February 2007

1 April 2004

(a) whose permission to carry on any such activity was given before 13 February 2004; or
(b) which complies with BIPRU.

COLL 6.9.9 (4) COLL 6.9.9 (5) COLL 6.9.9 (6) COLL 6.9.9 R (4) to (6)(Restrictions of business for UCITS management companies)

A UCITS investment firm will not be able to act as such and exercise an EEA right under the UCITS Directive unless it complies with UPRU until the 31st December 2006 and BIPRU from the 1st January 2007.

Committees and delegation

COLL 6.6.15R(2), (4) and (5) (Committees and delegation)

(1) Subject to (2), a UCITS management company which became authorised before 13 February 2004 will not contravene COLL 6.6.15 (2) , COLL 6.6.15 (4) and COLL 6.6.15 (5) (Committees and delegation) to the extent that it complies with CIS 7.6.1 R (2) , CIS 7.6.1 R (4) and CIS 7.6.1 R (5) and CIS 7.10.4 R (1), CIS 7.10.4 R (5) and CIS 7.10.4 R (6) as they applied before 12 February 2004.
(2) Paragraph (1) does not apply in relation to any UK firm which exercises an EEA right under the UCITS Directive.

From 1 April 2004 to 12 February 2007

1 April 2004

Existing dual-priced AUTs: dealing and valuation

COLL 6.2 (dealing); COLL 6.3 (Valuation and pricing); COLL 5.2.5 R (Valuation) and COLL 4.2.5 R 16 (Table: contents of the prospectus)

(1) Subject to (2), the manager of a dual-priced AUT which has exercised its entitlement under CIS 1.1.1AR to comply with COLL instead of CIS, will not contravene any of the provisions in column (2) to the extent that it complies with CIS 15 (Dual-pricing and dealing), CIS 5.2.5 R (Valuation) and CIS 5A.2.5 R (Valuation) (and references in COLL to the rules in column (2) are to be construed accordingly).

From 1 April 2004 until 12 February 2007

1 April 2004

(2) Where the rules in COLL 6.2 (Dealing), COLL 6.3 (Valuation and pricing) and COLL 5.2.5 R (Valuation) conflict with the relevant requirements of CIS 15 (Dual-pricing and dealing), CIS 5.2.5 R (Valuation) and CIS 5A.2.5 R (Valuation), the manager must proceed on the basis that the former rules (COLL) override the latter (CIS) unless compliance with a relevant rule in COLL 6.2 or COLL 6.3 or COLL 5.2.5 R would not be possible.

COLL 6.2 (dealing); COLL 6.3 (Valuation and pricing); COLL 5.2.5 R (Valuation) and COLL 4.2.5 R 16 (Table: contents of the prospectus)

(1) A dual-priced AUT values on a basis that results in different issue and cancellation prices compared to a single-priced scheme. Furthermore, the manager sets sale and redemption prices within the pricing envelope of the cancellation price and issue price together with the preliminary charge. Transitional provision 8 allows such a system to continue to operate.
(2) However, transitional provision 8 also requires the COLL provisions to override the applicable CIS provisions where appropriate, that is in circumstances where there is a conflict between them. So, for example, publishing prices should comply with COLL 6.3.11 R (Publication of prices) rather than CIS 15.4.14 R. Where complying with the relevant COLL rules would not be practicable or not feasible for some reason, the manager is advised to contact the FSA.

FEES 3.2.1 R

(1) If the authorised fund manager of a scheme notifies the FSA under section 251 of the Act or regulation 21 of the OEIC Regulations in relation to a proposal to alter a scheme under transitional provision 1 or transitional provision 3(1)(b), the authorised fund manager must pay to the FSA a fee of £400 for each individual scheme and a fee of £800 for each umbrella scheme
(2) A fee payable under this provision must be paid by bankers draft, cheque or other payable order when the notification is made.

1 April 2004 to 12 February 2007

1 April 2004

Definition of relevant party

COLL

For the purposes of these transitional rules, a "relevant party" in relation to:

From 1 April 2004 until 12 February 2007

1 April 2004

(1) any AUT, is its manager and trustee; and

(2) any ICVC, is:

(a) the ICVC;
(b) its ACD;
(c) any other directors of the ICVC; and
(d) its depositary.

Expired

COLL 4.2.5 R , Table paragraphs 2 (bb), 11 (a)(v) and 23 (e)

In relation to any authorised fund in existence on the day before 6 April 2006 there is no obligation to revise the prospectus as a result of the application of COLL 4.2.5 R , Table paragraphs 2 (bb), 11 (a)(v) or 23 (e) until the earlier of:
(1) the date the prospectus is next revised; and
(2) 6 April 2007.

From 6 April 2006 to 6 April 2007

6 April 2006

01/01/2007

COLL Sch 1

Record keeping requirements

01/12/2004

COLL Sch 1.1

1 Record keeping requirements

Handbook reference

Subject of record

Contents of record

When record must be made

Retention period

COLL Transitional Provision 3

Election or revocation to comply with CIS

Details

At election or revocation

6 years

COLL 4.4.11 R (5)

Minutes of meetings (AFM)

Full details

As implicit from the rules in COLL

COLL 6.2.5 R (1)

Issues and cancellations of units (AFM)

Full details

As implicit from the rules in COLL

COLL 6.4.6 R (4)

Instruments of Transfer (person responsible for the register)

Full details

From registration

6 years

COLL 6.6.6 R (1)

General record- keeping obligations (AFM)

Such as to demonstrate compliance with the rules in COLL

As implicit from the rules in COLL

6 years

COLL 6.6.6 R (2)

Units held, acquired or disposed of (AFM)

Daily record of units held, acquired or disposed of by the AFM

As implicit in rules in COLL

6 years

COLL 6.6.6 R (3)

Dilution record- keeping obligations (AFM)

How the AFM calculates and estimates dilution and its policy and method for determining the amount of any dilution levy or dilution adjustment

As implicit from the rules in COLL

6 years

COLL 6.6.12 R (3)

General record-keeping obligations (depositary)

Such as to demonstrate compliance with the rules in COLL

As implicit from the rules in COLL

6 years

COLL 8.3.8 R (2)

Minutes of meetings (AFM)

Full details

As implicit from the rules in COLL

6 years

COLL 8.5.2 R (3)(e)

General record keeping obligations (AFM)

Full details

As implicit from the rules in COLL

COLL 8.5.2 R (3)(f)

Units held, acquired or disposed of (AFM)

Daily record of units held, acquired or disposed of by the AFM

As implicit from the rules in COLL

6 years

COLL 8.5.4 R (2)(h)

General record keeping obligation (depositary)

Full details

As implicit from the rules in COLL

COLL 8.5.10 R (4)

Issues and cancellations of units (AFM)

Full details

As implicit from the rules in COLL

01/12/2004

COLL Sch 2

Notification requirements

01/12/2004

COLL Sch 2.1

This schedule sets out the notification requirements detailed in COLL in respect only of notifications to be provided to the FSA. These notification requirements, it should be noted, are in addition to the notifications which must be made to the FSA under section 251 of the Act (Alteration of schemes and changes of manager or trustee) and under regulation 21 of the OEIC Regulations (The Authority's approval for certain changes in respect of a company).

01/12/2004

COLL Sch 2.2

1 Notification requirements

Handbook reference

Matter to be notified

Contents of notification

Trigger event

Time allowed

COLL Transitional provision 3

Election or revocation to comply with CIS

Details and the date from which it is to take effect

At election or revocation

Immediate

COLL 3.2.7 R (2)

ICVC with only one sub-fund

Action to rectify situation

Umbrella has only one sub-fund

24 months

COLL 3.2.8 R (2)

Marketing of UCITS scheme in another EEA State

Details, including EEA state concerned

Intention to market

Immediate

COLL 4.2.3 R (1)(b)

Prospectus and any revisions thereto

Copy provided

Marketing scheme

Before marketing begins

COLL 4.5.14 R (2)(d)

Annual and half yearly reports

Copy of report

End of annual or half-yearly accounting period

Immediately on publication

COLL 5.2.24 R (2) & COLL 5.2.24 R (3)

Risk management process and any material alteration to it

Methods of estimating risk, types of derivative, their underlying risk and any quantitative limits

Intention to use derivatives in the management of a scheme or any subsequent proposed material alteration to the risk management process

Before policy is implemented

COLL 6.5.3 R (5)

Change of ACD, directors or controller of ACD or a corporate director

Details

Occurrence

Immediate

COLL 6.6.7 R

Capital of ICVC

Details if capital: (a) falls below minimum or(b) exceeds maximum

Occurrence

Immediate

COLL 6.9.11 R

Change to ICVC or to one of its officers

Details

Occurrence

14 days

COLL 7.2.1 R (2) & COLL 7.2.1R (5)

Suspension or resumption of dealing

Details including reason for suspension

Occurrence

Immediate

COLL 7.3.5 R (5)

Winding up a solvent ICVC or terminating a solvent ICVC sub-fund (Directors)

Solvency statement

Winding up a solvent ICVC or ICVC sub-fund

Within 21 days of notice given under regulation 21 of OEIC Regulations

COLL 7.3.7 R (9)

Winding up a solvent ICVC or sub-fund of an ICVC (Depositary)

Completion of winding up or termination of a sub-fund

Winding up a solvent ICVC or ICVC sub-fund

As soon as reasonably practical after winding up completed

COLL 7.3.8 R (6)

Winding up a solvent ICVC (ACD)

Final accounts

Completion of winding up

Two months

COLL 7.3.8 R (6)

Winding up a solvent ICVC sub-fund (ACD)

Termination account and auditor's report

Termination of sub-fund

Two months

COLL 7.4.4R (6)

Winding up of an AUT or an AUT sub-fund (Trustee)

Completion of winding up

Winding up of an AUT

Immediate

COLL 7.4.5 R (5)

Winding up an AUT or AUT sub-fund

Annual reports of the manager and trustee

End of final accounting period

Two months

COLL 8.3.2 R

Prospectus and revisions

Full documents

Before marketing commences

Immediate

COLL 8.3.5 R (6)

Annual and half yearly reports

Copy of report

End of annual or half-yearly accounting period

Immediately on publication

COLL 8.6.3 R (3) & COLL 8.6.3 R (5)

Suspension or resumption of dealing (AFM)

Details including reason for suspension

Occurrence

Immediate

COLL 9.3.1 D

Notification of a scheme constituted in a designated territory

Prescribed details

Intention to market scheme in UK

As implicit from rules in COLL

COLL 9.3.1 D

Application under section 272 of the Act

Details

Intention to market scheme in the UK

Up to 6 months before commencing marketing

01/12/2004

COLL Sch 3

Fees and other required payments

01/12/2004

COLL Sch 3.1

The provisions relating to fees for collective investment schemes are set out in FEES 1, 2, 3 and 4

01/01/2006

COLL Sch 3.2

The provisions relating to fees for collective investment schemes are set out in FEES 1, 2, 3 and 4

01/01/2006

COLL Sch 4

Powers exercised

01/12/2004

COLL Sch 4.1

The following powers and related provisions in or under the Act have been exercised by the FSA to make the rules in COLL:

Section 138 (General rule-making power)

Section 140 (Restriction on managers of certain collective investment schemes)

Section 145 (Financial promotion rules)

Section 156 (General supplementary powers)

Section 242 (Applications for authorisation of unit trust schemes)

Section 247 (Trust scheme rules)

Section 248 (Scheme particulars rules)

Section 278 (Rules as to scheme particulars)

Section 340 (Appointment)

Paragraph 17 (Fees) of Schedule 1 (The Financial Services Authority)

Regulation 6 (FSA rules) of the OEIC regulations

01/12/2004

COLL Sch 4.2

The following powers in the Act have been exercised by the FSA to give the guidance in COLL:

Section 157(1) (Guidance)

01/12/2004

COLL Sch 4.3

The following powers in the Act have been exercised by the FSA in COLL to specify and direct:

Section 270(6)(b) (Schemes authorised in designated countries or territories)

Section 274 (Applications for recognition of individual schemes)

01/12/2004

COLL Sch 5

Rights of action for damages

01/12/2004

COLL Sch 5.1

The table below sets out the rules in COLL contravention of which by an authorised person may be actionable under section 150 of the Act (Actions for damages) by a person who suffers loss as a result of the contravention.

If a Yes appears in the column headed For private person, the rule may be actionable by a private person under section 150 unless a Yes appears in the column headed Removed. A Yes in the column headed Removed indicates that the FSA has removed the right of action under section 150(2) of the Act. If so, a reference to the rule in which it is removed is also given.

In accordance with The Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001 (SI 2001/2256), a private person is:

(1)

any individual, except when acting in the course of carrying on a regulated activity; and

(2)

any person who is not an individual, except when acting in the course of carrying on business of any kind;

but does not include a government, a local authority or an international organisation.

The column headed For other person indicates whether the rule is actionable by a person other than a private person, in accordance with those Regulations. If so, an indication of the type of person by whom the rule is actionable is given.

01/12/2004

COLL Sch 5.2

1. Actions for damages: the New Collective Investment Schemes Sourcebook

Chapter/Appendix

Section/Annex

Paragraph

Right of action section 150

For private person?

Removed

For other person?

All rules in COLL

Yes

01/12/2004

COLL Sch 6

Rules that can be waived

01/12/2004

COLL Sch 6.1

1. The rules in COLL can be waived by the FSA under sections 148 or 250 of the Act (Modification or waiver of rules) or regulation 7 of the OEIC Regulations (Modification or waiver of FSA rules), except COLL 3.2.8R (UCITS obligations) and COLL 6.9.9 (Restrictions of business for UCITS management companies).

01/12/2004

COLL Sch 6.2

2. Although the FSA has the formal power of waiver under the Act in relation to these rules, much of COLL implements the requirements of the UCITS Directive by ensuring that relevant authorised funds comply with such requirements. Accordingly, while formal power may exist to waive such UCITS Directive derived rules, the FSA's ability to do so is severely constrained.

01/12/2004