Regulation 42 Umbrella schemes: restriction requirement

(1)

An umbrella co-ownership scheme meets the restriction requirement under regulation 10 at any time when each sub-scheme of the scheme meets at least one of the restriction conditions.

(2)

Accordingly, references to a co-ownership scheme in regulations 11 to 14 are to be read as if they were references to a sub-scheme of the umbrella co-ownership scheme.

(3)

Regulation 15 applies as if—

(a)

it provided that an umbrella RIF’s status as a RIF is unaffected by virtue of a change in which of the restriction conditions any of its sub-schemes meets at any time (so long as each sub-scheme continues to meet at least one of those conditions),

(b)

paragraph (3) applied where—

(i)

a RIF’s status as such has at any time depended on one of its sub-schemes meeting the UK property rich condition,

(ii)

the sub-scheme ceases to meet that condition at a particular time, and

(iii)

on ceasing to meet that condition, it meets the non-UK property assets condition, and

(c)

references to a RIF in paragraphs (1), (3) and (4) were references to the sub-scheme.

(4)

Regulation 18 applies as if—

(a)

the reference in paragraph (1) to a RIF breaching the restriction requirement were a reference to an umbrella RIF breaching the restriction requirement as a result of a sub-scheme (the “relevant sub-scheme”) of the RIF ceasing to meet at least one of the restriction conditions,

(b)

the deemed disposal of units under paragraph (4), were a deemed disposal of units in the relevant sub-scheme by the participants in that sub-scheme and the duty imposed on the operator by paragraph (5) to notify the participants of the deemed disposal is to be read accordingly, and

(c)

the reference in paragraph (6) to a breach of the restriction requirement by virtue of a RIF ceasing to meet the exempt investor condition were a reference to a breach of the restriction requirement by an umbrella RIF by virtue of a sub-scheme of the RIF ceasing to meet the exempt investor condition.