Article 121 InterpretationI1

United Kingdom

(1)

Amend regulation 2(1) (interpretation)^f1 as follows.

(2)

Amend sub-paragraph (a) in accordance with paragraphs (3) and (4) below.

(3)

In the definition of “company” in paragraph (i) for “75(8) of the Financial Services Act 1986” substitute “236 of the Financial Services and Markets Act 2000”.

(4)

For the definition of “European institution” substitute—

““European institution” means an EEA firm of the kind mentioned in paragraph 5(a), (b) or (c) of Schedule 3 to the Financial Services and Markets Act 2000 which is an authorised person for the purposes of that Act as a result of qualifying for authorisation under paragraph 12 of that Schedule;”.

(5)

Amend sub-paragraph (b) in accordance with paragraphs (6) to (14) below.

(6)

Before the definition of “authorised unit trust” insert—

““authorised fund” means—

(i)

an authorised unit trust, or

(ii)

an open-ended investment company with variable capital incorporated in the United Kingdom in the case of which an authorisation order made by the Financial Services Authority under regulation 14 of the Open-Ended Investment Companies Regulations 2001^f2 is in force;”.

(7)

In the definition of “authorised unit trust” for “78 of the Financial Services Act 1986” substitute “243 of the Financial Services and Markets Act 2000”.

(8)

In the definition of “the first condition” for the words from “subject to” to the end substitute “of the scheme, or subject to the trusts of the scheme, to consist of units in, or shares of, authorised funds or parts of umbrella schemes which are not securities schemes or warrant schemes;”.

(9)

In the definition of “the second condition”—

(a)

for “subject to the trusts of the scheme” substitute “of the scheme, or subject to the trusts of the scheme,”;

(b)

in paragraph (i) for “87 or 88 of the Financial Services Act 1986” substitute “270 or 272 of the Financial Services and Markets Act 2000”;

(c)

for paragraph (ii) to the end substitute—

“(ii)

a part of a scheme mentioned in paragraph (i) which would be a part of an umbrella scheme if the definition of “umbrella scheme” and a part thereof applied to a scheme mentioned in paragraph (i),

where the terms of the scheme mentioned in paragraph (i) identify that scheme, or the part thereof, as the case may be, as a scheme or part that would belong to one of the categories of securities scheme or warrant scheme, if that scheme or part, as the case may be, were independently an authorised fund;”.

(10)

In the definition of “fund of funds”—

(a)

for ““fund of funds”” substitute ““fund of funds scheme””;

(b)

in paragraph (i)—

(i)

for “authorised unit trust” substitute “authorised fund”;

(ii)

for “fund of funds” substitute “fund of funds scheme”;

(c)

in paragraph (ii) for “authorised unit trust” substitute “authorised fund”.

(11)

In the definition of a “relevant UCITS”—

(a)

in paragraph (i) for “86 of the Financial Services Act 1986” substitute “264 of the Financial Services and Markets Act 2000”;

(b)

in paragraph (ii) for the words from “an umbrella company” to “in either case” substitute “an umbrella scheme, if the definition of “umbrella scheme” and a part thereof”;

(c)

for “securities fund, warrant fund, securities company or warrant company” substitute “securities scheme or warrant scheme”;

(d)

for the words from “authorised unit trust” to the end substitute “authorised fund;”.

(12)

For the definition of “securities fund” substitute—

““securities scheme” means—

(i)

an authorised fund which according to the terms of the scheme is a securities scheme belonging to the category under that name established by the Financial Services Authority, and

(ii)

a part of an umbrella scheme which the terms of the scheme identify as a part which would belong to that category if it were itself an authorised fund;”.

(13)

For the definition of “umbrella scheme” substitute—

““umbrella scheme” means an authorised fund which according to the terms of the scheme is an umbrella scheme belonging to the category under that name established by the Financial Services Authority, and

(i)

in the case of an authorised fund which is an authorised unit trust, references to a part of an umbrella scheme shall be construed in accordance with subsection (8) of section 468 of the Taxes Act, and, in relation to a part of an umbrella scheme, references to investments subject to the trusts of an authorised unit trust and to a unit holder shall be construed in accordance with subsection (9) of that section, and

(ii)

in the case of an authorised fund which is an open-ended investment company, references to a part of an umbrella scheme shall be construed in accordance with subsection (18) of section 468 of the Taxes Act as that subsection is added in relation to open-ended investment companies by regulation 10(4) of the 1997 Regulations, and, in relation to a part of an umbrella scheme, references to investments of the company shall be construed in accordance with subsection (12) of that section as so added;”.

(14)

For the definitions of “warrant company” and “warrant fund” substitute—

““warrant scheme” means—

(i)

an authorised fund which according to the terms of the scheme is a warrant scheme belonging to the category under that name established by the Financial Services Authority, and

(ii)

a part of an umbrella scheme which the terms of the scheme identify as a part that would belong to that category if it were itself an authorised fund;”.

(15)

In sub-paragraph (c)—

(a)

omit the definitions of “securities company” and “umbrella company”;

(b)

in the definition of “shares” for “umbrella company” substitute “umbrella scheme”.

Annotations

Commencement

I1: Art. 121 in force at 1.12.2001, see art. 1(2)(b)

Footnotes

f1: Regulation 2(1) was relevantly amended by regulation 3(a) of S.I. 1995/3287, regulation 3(2) and (3) of S.I. 1997/1716, regulation 3 of S.I. 1998/1869 and regulation 3 of S.I. 2001/923.
f2: S.I. 2001/1228.