Authorised unit trust authorisation and winding-up
Authorised unit trust authorisation and winding-up

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Authorised unit trust authorisation and winding-up
  • Authorisation of an authorised unit trust (AUT)
  • What is an AUT?
  • Acting as trustee or manager of an AUT
  • Making the FCA application for authorisation of a unit trust
  • Key investor information
  • Ongoing operation of the AUT
  • Winding-up an authorised unit trust or sub-fund
  • Why will an AUT be wound up?
  • The winding—up process of an AUT
  • More...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

Authorisation of an authorised unit trust (AUT)

What is an AUT?

A unit trust is a type of collective investment scheme (CIS) in which the assets are held by a trustee for the benefit of the investors (the unitholders) pursuant to the terms of the a trust deed. CIS are defined in section 235 of Financial Services and Markets Act 2000 (FSMA 2000). An authorised unit trust (AUT) is a unit trust scheme that is authorised under FSMA 2000, s 243 by the Financial Conduct Authority (FCA).

AUT's may be formed as single funds or umbrella funds accommodating a number of sub-funds. There are three types of authorised fund available in the UK and an AUT can be used as the legal vehicle for each type of these funds:

  1. undertakings for collective investment in transferable securities (UCITS)–available to the general public (see Practice Note: Undertakings for Collective Investment in Transferable Securities—essentials)

  1. Non-UCITS retail schemes

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