Regulation 25 Types of breach

(1)

This Chapter applies if an investment trust is in breach of a requirement imposed by these Regulations.

(2)

A breach is—

(a)

a minor breach, or

(b)

a serious breach.

(3)

For the purposes of these Regulations, a breach is a “serious breach” if it is—

(a)

a breach specified as a serious breach in this Chapter, or

(b)

a breach which is not a minor breach.

(4)

For the purposes of these Regulations, a breach is a “minor breach” if it is a breach (other than a breach specified as a serious breach in this Chapter)—

(a)

for which there is a reasonable excuse, and

(b)

which is inadvertent and corrected as soon as reasonably practicable.

(5)

For the purposes of this Chapter a minor breach is not regarded as a breach if the investment trust—

(a)

notifies the Commissioners of the breach in accordance with regulation 24, and

(b)

corrects the breach as soon as reasonably practicable without any intervention by the Commissioners.

(6)

For the purposes of this regulation there is an “intervention by the Commissioners” in relation to an investment trust if the Commissioners ask it to provide them with information relating to a requirement imposed by Chapter 3.

This paragraph is subject to paragraph (7).

(7)

There is no intervention by the Commissioners in relation to an investment trust if—

(a)

the investment trust notifies the Commissioners of the breach in accordance with regulation 24,

(b)

the investment trust complies with regulation 25(5), and

(c)

the Commissioners request the investment trust to provide them with information so that they may determine whether the breach has been corrected.