Paragraph 37 F1

United Kingdom

For the purposes of this Schedule, arrangements are not a collective investment scheme if—

(a)

the purpose of the arrangements is that participants should receive, by way of reward, payments or other benefits in respect of the introduction by any person of other persons who become participants;

(b)

the arrangements are such that the payments or other benefits referred to in paragraph (a) above are to be wholly or mainly funded out of the contributions of other participants; and

(c)

the only reason why the arrangements have either or both of the characteristics mentioned in section 75(3) of this Act is because, pending their being used to fund those payments or other benefits, contributions of participants are managed as a whole by or on behalf of the operator of the scheme.

Annotations

Textual amendments

F1: Sch. 1 para. 37 inserted (6.2.1997) by S.I. 1997/32, art. 2(2)

Notes on the whole Act

Textual amendments

F1: Act repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 3(1)(c) (with savings in art. 292)

Notes on Schedule 1

Modifications

C1: Sch. 1 amended by S.I. 1988/496, art. 4
C2: Sch. 1 amended by S.I. 1988/803, art. 5