COLL 15.10 Termination, suspension, and schemes of arrangement

This section applies to:

1. (1)

   an authorised fund manager of an AUT, ACS or an ICVC;

2. (2)

   any other director of an ICVC;

3. (3)

   the depositary of an AUT, ACS or an ICVC; and

4. (4)

   an ICVC,

   which is a long-term asset fund.

For a long-term asset fund the provisions in COLL 7.3 to COLL 7.5 will apply as appropriate as if COLL 7 applied to long-term asset fund s.

1. (1)

   The authorised fund manager may, with the prior agreement of the depositary, and must without delay, if the depositary so requires, within any parameters which are fair and reasonable in respect of all the unitholders in the scheme and which are set out in the prospectus, temporarily suspend dealings in units of the scheme, a sub-fund or a class.

2. (2)

   Any suspension within (1) must only be where the authorised fund manager has determined that due to exceptional circumstances the suspension of dealings is in the interests of unitholders or potential unitholders, and the authorised fund manager must have regard to the interests of all the unitholders in the scheme in reaching such an opinion.

3. (3)

   At the commencement of suspension under (1), the authorised fund manager must immediately inform the FCA of the suspension and the reasons for it.

4. (4)

   The authorised fund manager must ensure that a notification of the suspension is made to unitholders of the authorised fund as soon as practicable after suspension commences, which:

   1. (a)

      is clear, fair and not misleading;

   2. (b)

      draws unitholders’ particular attention to the exceptional circumstance which resulted in the suspension; and

   3. (c)

      informs unitholders how to obtain the information detailed in (4A).

5. (4A)

   The authorised fund manager must ensure that it publishes (on its website or by other general means) sufficient details to keep unitholders appropriately informed about the suspension including, if known, its likely duration.

6. (5)

   The authorised fund manager and the depositary must ensure that the suspension only continues for as long as it is justified having regard to the interests of the unitholders.

7. (6)

   The suspension of dealings in units must cease, as soon as (2) no longer applies.

8. (7)

   The authorised fund manager and the depositary must formally review the suspension at least every 28 days and inform the FCA of the results of this review and any change to the information provided in (3).

9. (8)

   The authorised fund manager must inform the FCA immediately of the resumption of dealings.

In relation to an ICVC, ACS or an AUT which is a long-term asset fund, the provisions in COLL 7.6 (Schemes of arrangement) will apply as appropriate to the authorised fund manager, any other directors of the ICVC and the depositary as if COLL 7.6 applied to a long-term asset fund and did not exclude unitholders becoming unitholders in another long-term asset fund.