Authorised unit trust—operational requirements under COLL
Produced in partnership with Macfarlanes LLP
Authorised unit trust—operational requirements under COLL

The following Financial Services practice note Produced in partnership with Macfarlanes LLP provides comprehensive and up to date legal information covering:

  • Authorised unit trust—operational requirements under COLL
  • Investor-facing documentation requirements (COLL 4)
  • Making changes to an AUT
  • Restrictions relating to the assets an authorised unit trust may hold
  • Operating a collective investment scheme
  • Suspending dealings in units in unit trusts

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.

Authorised unit trust-operational requirements under COLL

COLL provides very detailed rules on almost all aspects of the operation for authorised unit trusts (AUTs). These are not conduct-of-business rules as such, and in particular they do not set out rules for the marketing of unit trusts, but they do set out a very prescriptive regime with which the manager and the trustee must comply in operating a unit trust.

Investor-facing documentation requirements (COLL 4)

The prospectus

COLL 4 (Investor Relations) is designed to achieve the statutory objective of protecting consumers by ensuring consumers have access to up-to-date detailed information about an authorised fund particularly before buying units and thereafter an appropriate level of investor involvement exists by providing a framework for investors to participate in the key issues concerning the authorised fund, and, be sent regular relevant information about the authorised fund. This includes setting out detailed requirements for pre-sale notifications on a prospectus.

COLL 4.2.2 R requires

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