Regulation 75 The genuine diversity of ownership condition

(1)

The genuine diversity of ownership condition is met if the fund meets conditions A to C throughout the period of account.

(2)

Condition A is that the fund produces documents, available to investors and to HMRC, which contain—

(a)

a statement specifying the intended categories of investor,

(b)

an undertaking that interests in the fund will be widely available, and

(c)

an undertaking that interests in the fund will be marketed and made available in accordance with the requirements of paragraph (4)(a).

(3)

Condition B is—

(a)

that the specification of the intended categories of investor do not have a limiting or deterrent effect, and

(b)

that any other terms or conditions governing participation in the fund do not have a limiting or deterrent effect.

(4)

Condition C is—

(a)

that interests in the fund must be marketed and made available—

(i)

sufficiently widely to reach the intended categories of investors, and

(ii)

in a manner appropriate to attract those categories of investors, and

(b)

that a person who falls within one of the intended categories of investors can, upon request to the manager of this fund, obtain information about the fund and acquire units in it.