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PREVENTION OF FRAUD (INVESTMENTS) ACT (NORTHERN IRELAND) 1940 - SECT 16

Authorised unit trust schemes.

16.(1) The Ministry may by order declare to be an authorised unit trust scheme
for the purposes of this Act any unit trust scheme in relation to which
the Ministry is satisfied that the following conditions are fulfilled, that is
to say:

(a)that each of the persons who are respectively the manager and the trustee
under the scheme is a corporation incorporated [under the law of, or of some
part of, the United Kingdom or any other State which is a member of the
European Economic Community], and having a place of business in Northern
Ireland at which notices and other documents are received on behalf of the
corporation, and

(b)that the scheme is such that the effective control over the affairs of the
corporation which is the manager under the scheme is and will be exercised
independently of the corporation which is the trustee under the scheme, and

(c)that the scheme is such as to secure that any trust created in pursuance of
the scheme is expressed in a deed providing, to the satisfaction of
the Ministry, for the matters specified in the Schedule to this Act, and

(d)as respects the corporation being the trustee either

(i)that the corporation has a capital (in stock or shares) for the time being
issued of not less than five hundred thousand pounds, of which an amount of
not less than two hundred and fifty thousand pounds has been paid up, and that
the assets of the corporation are sufficient to meet its liabilities
(including liabilities) in respect of the repayment of its capital), or

(ii)that more than four-fifths of the said capital of the corporation is held
by another corporation being a corporation in relation to which the conditions
as to capital and assets specified in sub-paragraph (i) of this paragraph are
fulfilled:

Provided that, if with respect to any trust the Ministry is satisfied that, by
reason of the special circumstances of the trust, the fulfilment in relation
thereto of the condition specified in paragraph (c) of this sub-section is
impracticable, the Ministry may dispense with the fulfilment of that condition
in relation to that trust so far as it appears to the Ministry that it can
properly do so without prejudicing the interests of the beneficiaries.

(2) If, with respect to any authorised unit trust scheme, the Ministry
considers that the order declaring the scheme to be an
authorised unit trust scheme ought to be revoked on either of the following
grounds, that is to say:

(a)that the conditions specified in paragraphs (a) to (d) of the preceding
sub-section are no longer fulfilled in the case of that scheme, or

(b)that the circumstances relevant to the making of an order have materially
changed since the making thereof,

(3) The terms of any trust created before the commencement of this Act in
pursuance of a unit trust scheme may, notwithstanding anything in any deed, be
varied or supplemented by a deed made between the trustee and the manager
under the scheme, and containing such provisions as may be certified by
the Ministry to be necessary for the purpose of securing that the condition
mentioned in paragraph (c) of sub-section (1) of this section is fulfilled in
relation to that scheme.

(4) The Ministry shall, not less often than once a year, cause particulars of
every unit trust scheme which is for the time being an
authorised unit trust scheme, to be published in such manner as the Ministry
thinks proper.

Offences and prosecutions.

© 1940 Crown Copyright

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