Regulation 12 Ability of authorised securities scheme to invest in open-ended collective investment schemes

The property of an authorised securities scheme shall not include units in a collective investment scheme which has the characteristics described in section 78(6) of the Act or is treated as having those characteristics by virtue of that provision unless the scheme is either—

(a)

another authorised securities scheme; or

(b)

a recognised scheme which has the characteristics described in sub-paragraph (c)(i) to (iii) of this paragraph; or

(c)

a collective investment scheme constituted in a country or territory outside the United Kingdom units in which are approved securities, and—

(i)

the sole object of which is to invest funds raised from the public in transferable securities;

(ii)

which operates on the principle of risk-spreading; and

(iii)

the terms of which restrict investment in units in other collective investment schemes to investment in units in schemes of a kind described in this regulation and prohibit more than 5% in value of the property of the scheme consisting of such units.