Regulation 32 Underwriting and placings
The manager shall not, in his capacity as manager, enter into agreements or understandings of a kind to which this regulation applies unless—
in the case of an underwriting or sub-underwriting agreement, the trustee could discharge any obligation he may be called upon to perform in pursuance of the agreement without there being a contravention of whichever is applicable of regulations 8 to 29;
in the case of any other agreement or understanding, the transferable securities could be acquired without there being any such contravention; and
in any case other than a case in which the cost of acquiring any transferable securities that the trustee may or will be called upon to acquire in pursuance of any such agreement or understanding is to be met by the issue of units in the scheme, that cost could be met in full out of cash or near cash comprised in the property of the scheme and which is not taken into account for the purposes of regulation 8(5)(b)(i), 8(7) or 15 or out of sums which could be borrowed without contravening regulation 31(2)(b).
This regulation applies to any underwriting or sub-underwriting agreement and to any agreement or understanding that transferable securities will be issued to or acquired by the trustee acting in his capacity as such.
The manager shall take all reasonable steps and exercise all due diligence to ensure that the conditions specified in paragraph (1)(a) to (c) continue to be fulfilled at all times during which the trustee may or will be called upon to acquire transferable securities in pursuance of any agreement or understanding to which this regulation applies.
The trustee shall take all reasonable steps and exercise all due diligence to exercise such degree of supervision over the manager’s operation of the scheme as is appropriate with a view to ensuring that the manager fulfils the duty imposed on him by paragraph (3).