Section 257 Directions.I1

United Kingdom

C1(1)

The F1FCA may give a direction under this section if it appears to the FCA that—

(a)

one or more of the requirements for the making of an authorisation order are no longer satisfied;

F2(b)

the manager or trustee of an authorised unit trust scheme has contravened, or is likely to contravene, a requirement imposed—

(i)

by or under this Act; F3...

(ii)

by F4UCITS-related direct EU legislation; or

(F5iii)

by the MMF Regulation or any directly applicable regulation or decision made under that Regulation F6which constitutes F7assimilated direct legislation;

(c)

the manager or trustee of such a scheme has, in purported compliance with any such requirement, knowingly or recklessly given the FCA information which is false or misleading in a material particular; or

(d)

none of paragraphs (a) to (c) applies, but it is desirable to give a direction in order to protect the interests of participants or potential participants in such a scheme.

(2)

A direction under this section may—

(a)

require the manager of the scheme to cease the issue or redemption, or both the issue and redemption, of units under the scheme;

(b)

require the manager and trustee of the scheme to wind it up.

(3)

If the authorisation order is revoked, the revocation does not affect any direction under this section which is then in force.

(4)

A direction may be given under this section in relation to a scheme in the case of which the authorisation order has been revoked if a direction under this section was already in force at the time of revocation.

(5)

If a person contravenes a direction under this section, F8section 138D applies to the contravention as it applies to a contravention mentioned in that section.

C2(6)

The FCA may, either on its own initiative or on the application of the manager or trustee of the scheme concerned, revoke or vary a direction given under this section if it appears to the FCA—

(a)

in the case of revocation, that it is no longer necessary for the direction to take effect or continue in force;

(b)

in the case of variation, that the direction should take effect or continue in force in a different form.

Annotations

Textual amendments

F1: Word in ss. 254-262 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 9(1)(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F2: S. 257(1)(b) substituted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(20)
F3: Word in s. 257(1)(b)(i) omitted (28.6.2018 for specified purposes, 21.7.2018 in so far as not already in force) by virtue of The Money Market Funds Regulations 2018 (S.I. 2018/698), regs. 1(2), 2(9)(a)
F4: Words in s. 257(1)(b)(ii) substituted (31.12.2020) by The Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/325), regs. 1(2), 12(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)
F5: S. 257(1)(b)(iii) inserted (28.6.2018 for specified purposes, 21.7.2018 in so far as not already in force) by The Money Market Funds Regulations 2018 (S.I. 2018/698), regs. 1(2), 2(9)(c)
F6: Words in s. 257(1)(b)(iii) inserted (31.12.2020) by The Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/325), regs. 1(2), 12(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)
F7: Words in s. 257(1)(b)(iii) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 44(4)(i)
F8: Words in s. 257(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 12 (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Modifications

C1: S. 257(1) extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 69(1); S.I. 2001/3538, art. 2(1)
C2: S. 257(6) extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 69(3); S.I. 2001/3538, art. 2(1)

Commencement

I1: S. 257 wholly in force at 1.12.2001; s. 257 not in force at Royal Assent see s. 431(2); s. 257 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 257 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Notes on Part XVII

Modifications

C1: Pt. 17 modified (20.2.2019) by The Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/325), regs. 1(3), 62 (as amended (31.1.2020 immediately before exit day) by The Financial Services (Consequential Amendments) Regulations 2020 (S.I. 2020/56), regs. 1, 12(b))