The FSA publishes rules and guidance for unit trusts and oeics
09/08/2000
The Financial Services Authority (FSA) today published its draft rules and guidance for the operation of UK based collective investment schemes, these being unit trusts or open-ended investment companies (oeics).
The proposals will extend the powers of onshore oeics to allow wider range of investments including funds of funds, futures and options, deposits and property schemes.
The rules and guidance consolidates all product regulation material about collective investment schemes. The FSA high standards of consumer protection that the current material delivers will therefore be maintained.
In the short-term the FSAs aim is to carry forward, largely unchanged in substance, the existing regulations, but over time regulation will be developed where necessary to accommodate shifting consumer needs and market developments. Some aspects of the current regulations and of the rules proposed in this Sourcebook are already under review (for example those relating to the valuation and pricing of schemes).
The regime will also take account of the continuing work on the development of the new regulatory approach, as outlined in ''A new regulator for a new millennium'' published by the FSA in January 2000.
The FSA welcomes comments on all the draft rules and guidance by 6 October 2000 and will take account of the results of this consultation before publishing the collective investment scheme sourcebook in final form.
Notes for editors
- In order for collective investment schemes to be promoted to the public they need to be authorised by the FSA and comply with its rules. There is, currently, a large amount of FSA regulatory material that applies to these schemes. Its purpose is to implement European law requirements and to provide a body of rules and guidance within which these schemes can operate. This material provides a high standard of consumer protection for those investing in collective investment schemes.
- Consultative Paper 62 Collective Investment Scheme Sourcebook is available on the FSA website.
Appended information
This Consultation paper is available from the publications section of our web site. The direct URL is http://www.fsa.gov.uk/Pages/Library/Policy/CP/2000/62.shtml.