# The Authorised Unit Trust Scheme (Investment and Borrowing Powers) Regulations 1988, Regulation 9: Restriction of investment powers exercisable in relation to authorised unit trust schemes


(1) Subject to the provisions of these Regulations, the property of a scheme which is not a money market fund shall consist of transferable securities.
(2) Units in a collective investment scheme which has the characteristics described in section 78(6) of the Act or which is treated as having those characteristics by virtue of that provision may not be acquired for a scheme which is neither a Government and other public securities fund nor a money market fund, unless the manager is under a duty to pay into the property of the scheme—
(a) before the close of business on the fourth business day next after the agreement to buy the units, the maximum amount of any preliminary charge which may be made by the issuer of the units or, if the manager knows the price at which units in the relevant scheme would have been created at the relevant time, the difference between that price and the price he paid for the units if that price is greater than the creation price; and
(b) before the close of business on the fourth business day next after the agreement to sell the units, the amount of any charge which is made by the issuer on redemption of units.
(3) The property of a scheme, other than cash or near cash or property held for the purpose of hedging transactions, shall not consist only of units in a single scheme or recognised scheme unless the first scheme is a relevant pension scheme.
(4) Paragraph (2) shall apply in the case of the manager of a scheme which is either a Government and other public securities fund or a money market fund as if the periods specified in paragraph (2)(a) and (b) were periods ending with the close of business on the business day next after the agreement to buy or, as the case may be, to sell the units in question.

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Source: https://www.legislation.gov.uk/uksi/1988/284/regulation/9 (the official version)
Page: https://openlegislation.uk/authorised-unit-trust-scheme-investment-and-borrowing-powers-regulations-1988/regulation-9
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.