Regulation 7 Genuine diversity of ownership condition

(1)

A co-ownership scheme, including one which is part of multi-vehicle arrangements, meets the genuine diversity of ownership condition at any time that the scheme and, where applicable, the arrangements meet—

(a)

each of the conditions in regulation 75(2), (3) and (4)(a) of the 2009 Regulations, or

(b)

the conditions in regulation 75(5) of those Regulations, and for the purposes of this sub-paragraph the condition in regulation 75(4)(b) is treated as being omitted.

(2)

The fact that the capacity of a co-ownership scheme, or multi-vehicle arrangements, to receive investments is limited does not prevent regulation 75(3) of the 2009 Regulations from being met for the purposes of this regulation.

(3)

But paragraph (2) does not apply if—

(a)

the limited capacity of the co-ownership scheme, or the multi-vehicle arrangements, to receive investments is fixed by the documents of the scheme, or the arrangements or otherwise, and

(b)

a pre-determined number of specific persons, or specific groups of connected persons, make investments in the scheme, or the arrangements, that collectively exhausts all, or substantially all, of that capacity.

(4)

The 2009 Regulations have effect for the purposes of this paragraph as if references in those Regulations to a fund were references to a co-ownership scheme and included—

(a)

references to multi-vehicle arrangements, and

(b)

references to a co-ownership scheme which is not an offshore fund.

(5)

In this regulation—

(a)

the further provisions in regulation 76 of the 2009 regulations apply for the purposes of this regulation;

(b)

terms used in both paragraphs (2) and (3) and in regulation 76 of the 2009 Regulations have the meanings they have in that regulation;

(c)

“collective investment schemes” has the meaning given by section 235 of FISMA 2000;

(d)

“multi-vehicle arrangements” means arrangements comprising two or more collective investment schemes under which an investor in one of those schemes would reasonably regard that investment as an investment in the arrangements as a whole rather than exclusively in any particular scheme.