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United Kingdom Statutory Instruments |
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You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Common Investment Scheme 2004 No. 266 URL: http://www.bailii.org/uk/legis/num_reg/2004/20040266.html |
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| Made | 2nd February 2004 | ||
| Laid before Parliament | 6th February 2004 | ||
| Coming into force | 27th February 2004 |
(2) Where in any year an accounting date or a dividend date falls on a Saturday, Sunday, bank holiday or Good Friday, the accounting date or dividend date is taken to be the next business day.
The Capital Fund
3.
There shall continue to be a fund, known as the Capital Fund, for the purpose of the investment of money to be invested in common investment funds in accordance with section 42 of the Act.
Investment manager
4.
An investment manager appointed by the Lord Chancellor shall manage and control the fund.
Powers and duties of the investment manager
5.
- (1) Without prejudice to the generality of the duty of the investment manager to manage and control the fund, the investment manager has the powers and duties set out in Schedule 1 in respect of the fund.
(2) The investment manager shall administer the fund with the objective of securing long-term growth in income and capital.
(3) The investment manager shall determine an investment strategy designed to achieve the objective mentioned in sub-paragraph (2), and may from time to time revise the investment strategy for the same purpose.
(4) Before determining or revising an investment strategy, the investment manager shall consult the Board and the Lord Chancellor.
(5) The investment manager shall ensure that he or his representative attends all meetings of the Board to which he is invited, and supplies to the Board all information it reasonably requires.
Schedule 2
6.
Schedule 2 has effect in relation to the fund.
Revocation
7.
The Common Investment Scheme 1991[2], The Common Investment (Amendment) Scheme 1999[3], The Common Investment (Closure of High Yield Fund) Scheme 2003[4] and The Common Investment (Closure of High Yield Fund) (Amendment) Scheme 2003[5] are revoked.
Signed by authority of the Lord Chancellor.
Christopher Leslie
Parliamentary Under-Secretary of State, Department for Constitutional Affairs
Dated 2nd February 2004
(e) to determine, without regard to any rule of law specific to trust funds, whether any fees or expenses required to be paid out of the fund shall be defrayed out of capital or out of income or shall be apportioned, and, if so, in what proportions, between capital and income; and
(f) to take such action as he considers appropriate in relation to any situation (such as, but not limited to, takeover bids, schemes of arrangement, variation of rights, exercising voting rights, bonds and rights issues and underwriting offers) relating to any property or investment comprised in the fund.
2.
The investment manager shall -
(b) send to each unit holder, as soon as reasonably practicable after each accounting date, a manager's report made up to that accounting date containing information relating to such matters as the Lord Chancellor may specify;
(c) prepare dividend counterfoils for the fund for issue to each unit holder, in respect of each account held to the credit of that unit holder, such counterfoils to be sent to each unit holder within two weeks of each dividend date;
(d) attend to the completion of all the sales and purchases on behalf of the fund and arrange for the transfer of all investments acquired on behalf of the fund into the name of the investment manager or such nominee on his behalf as may be agreed between him and the Lord Chancellor;
(e) arrange for the collection of all dividends, income and other distributions made in respect of any investments of the fund;
(f) manage any cash balances to the best advantage of the fund;
(g) supervise all bank accounts and foreign exchange transactions relating to the fund;
(h) arrange for the publication of the prices of units, in such manner as he reasonably considers appropriate;
(i) prepare, and submit to the Inland Revenue within the required time, tax returns and repayment claims, and reclaim overpaid tax from overseas tax authorities; and
(j) pay out of the fund such fees as he is required to collect under section 42(12) of the Act.
3.
On appointment, the investment manager shall take such steps as are necessary to bring the money, securities and other assets of the fund, and any dividends, income and other distributions relating thereto, under his management and control.
4.
Where the appointment of an investment manager ceases he shall -
(2) On the dividend date immediately following each accounting date, the investment manager shall pay to each unit holder, by reference to each account held to the credit of that holder, the dividend amount determined in accordance with this paragraph multiplied by the number of such units held in that account.
(3) For the purposes of sub-paragraph (1), all the income of the fund is liable to distribution, except to the extent to which -
(4) The investment manager shall deem such amount as he considers appropriate of the first dividend payable after the purchase of a unit to have accrued in the buying price.
7.
- (1) The provisions of this paragraph have effect for the purpose of valuing units.
(2) On any valuation day, all units in issue are of equal value.
(3) In this paragraph, the "adjusted fund value" on a valuation day is an amount equal to the value of the fund on that day, plus any income accrued since the last accounting date, minus any accrued liabilities chargeable against the fund.
(4) For the purposes of sub-paragraph (3), income is to be treated as accruing daily.
(5) The value of a unit is an amount equal to the adjusted fund value divided by the number of units into which the fund is treated as being divided on the valuation day in question.
(6) The buying or selling price of a unit on a valuation day shall be the value of the unit on that day increased or reduced respectively, as the investment manager considers appropriate, to allow for the costs of the creation or realisation of units.
8.
If at any time the value of units appears to the investment manager to be too high to admit of monies being conveniently invested in the fund, he may divide every unit in such manner as he may, having consulted the Board and the Lord Chancellor, think fit.
9.
- (1) The provisions of this paragraph have effect for the purpose of regulating the allotment of units to, and their realisation by, unit holders.
(2) On any valuation day,
(3) The Accountant General shall if necessary revise, in the light of the buying and selling prices of which he is informed under sub-paragraph (2)(c)(ii), the number of units he wishes to purchase or realise, and if he does so must notify the investment manager accordingly.
(4) If, on any valuation day, the number of units to be purchased exceeds the number of units to be realised, the number of units into which the fund is treated as being divided and the total number of units deemed to be allotted to all the unit holders shall be increased by the difference.
(5) If, on any valuation day, the number of units to be realised exceeds the number of units to be purchased, the number of units into which the fund is treated as being divided and the total number of those units deemed to be allotted to all the unit holders shall be reduced by the difference.
(6) As soon as reasonably possible after a valuation day the investment manager shall inform each relevant unit holder of the cost of his purchases and the proceeds of his realisations of units on that day, and each unit holder shall pay to the investment manager and, as the case may be, the investment manager shall pay to each unit holder, the amount or amounts found due from him.
[2] SI 1991/1209, amended by SI 1999/551 and SI 2003/778.back
[4] SI 2003/778, amended by SI 2003/1027.back
