The Open-Ended Investment Companies Regulations 2001

UK Statutory Instrument 2001 No. 1228 — creates 7 criminal offences.

7offences created

0recorded in force

7revoked

Made: 27 March 2001
In force from: Not determined
Extent: Not stated
Subject: Corporate, financial services, company law, employment, charity, electoral and tax
Made under: Financial Services and Markets Act 2000

Explanatory note

(This note is not part of the Regulations) — published with the instrument by the department that made it. © Crown copyright, reused under the Open Government Licence v3.0.

These Regulations are made under section 262 of the Financial Services and Markets Act 2000. They make provision for facilitating the carrying on of collective investment by means of open-ended investment companies and regulate such companies. Part I of the Regulations deals with matters of citation, commencement, extent and interpretation of terms used in the Regulations. Part II deals with the formation, supervision and control of an open-ended investment company and the registration of certain details with the Financial Services Authority (“the FSA”). Regulation 5 and Schedule 1 are concerned with the custody of the company’s property and with the company’s depositary, who is the person to whom the company’s property is entrusted. Regulation 6 allows the FSA to make rules in relation to open-ended investment companies. Regulations 12 to 17 relate to the authorisation by the FSA of an open-ended investment company. The FSA must be satisfied that the company will, if formed and authorised, meet the requirements in regulation 15. There is provision for representations to be made against any refusal to authorise a company. Regulations 18 to 20 concern the name used by an open-ended investment company. Regulations 21 and 22 contain provisions requiring a company to seek prior approval from the FSA for certain changes, including changes to its instrument of incorporation. Regulations 23 to 29 confer powers on the FSA to intervene in the affairs of a company once it has been authorised. The FSA may revoke an authorisation, give directions and make applications to the court. Regulation 30 confers power on the Secretary of State and the FSA to appoint inspectors to investigate the affairs of an open-ended investment company and regulations 31 to 33 contain provisions as to winding up and dissolution of such companies. Part III sets out the corporate framework within which an open-ended investment company will operate, as supplemented by rules made by the FSA under regulation 6. Regulations 34 to 36 concern directors and the inspection of their service contracts. Regulation 37 makes provision for general meetings and regulations 38 to 44 concern the capacity of a company and the validity of certain transactions involving its directors. Regulations 45 to 52 contain provisions about the nature of the shares which a company may issue, share certificates, share transfers and the maintenance, closure and rectification of a register of shareholders which must be kept in accordance with Schedule 3. Regulations 53 to 65 concern the operation of an open-ended investment company, including details which must be included in correspondence (regulations 54 and 55), the execution and authentication of documents (regulations 57 to 60), liability and exemptions from liability (regulations 61 to 62), fraudulent trading (regulation 64) and the powers which a company has to make provision for its employees on the cessation or transfer of business (regulation 65). Regulations 66 to 69 and Schedule 5 deal with accounts and auditors. Regulation 70 and Schedule 6 concern the merger and division of open-ended investment companies. Part IV deals with the FSA’s registration functions in relation to open-ended investment companies. The FSA must keep a register of such companies and must allocate registered numbers to them (regulations 71 and 72). The FSA’s records are open to inspection (regulation 75) and it must publish, in the relevant Gazette, notice of the issue or receipt by it of certain documents (regulation 78). Part V contains miscellaneous provisions, including provisions about offences and minor and consequential amendments to primary and secondary legislation. Regulation 85 revokes the Open-Ended Investment Companies (Investment Companies with Variable Capital) Regulations 1996 and makes various consequential provisions.

Offences created by this instrument

SCHEDULE 3 SCHEDULE 3 · Revoked · Requires proof of a state of mind
SCHEDULE 5 SCHEDULE 5 · Revoked · Strict liability
SCHEDULE 5 SCHEDULE 5 · Revoked · Requires proof of a state of mind
SCHEDULE 5 SCHEDULE 5 · Revoked · Strict liability
Applications for authorisation regulation 12(5) · Revoked · Requires proof of a state of mind
Dissolution on winding up by the court regulation 32(7) · Revoked · Strict liability
Punishment for fraudulent trading regulation 64(1) · Revoked · Requires proof of a state of mind

What Parliament said about it

Contributions, debates and written statements mentioning this instrument by name. Parliamentary material is reused under the Open Parliament Licence v3.0.

Open-Ended Investment Companies Regulations 2001 Lords · Lords Chamber · 16 March 2001
Financial Services And Markets Commons · Commons Chamber · 21 March 2001
That the draft Open-Ended Investment Companies Regulations 2001, which were laid before this House on 27th February, be approved.
Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 201 Lords · Grand Committee · 27 April 2011 · Lord De Mauley
My Lords, perhaps I may explain by way of background to the order that the Companies Act 2006 provided for a single consolidated company law regime to apply across the whole of the United Kingdom. It repealed most of the Companies Act 1985, the Companies (Northern Ireland) Order 1986 and the Open-Ended Investment Companies Act (Northern Ireland) 2002. Before I go into the details of this order, which makes various amendments that, as its name implies, are consequential on the commencement of the 2006 Act, I shall touch briefly on some of the background to that Act. It was commenced in stages…
Open-Ended Investment Companies (Amendment) Regulations 2011 Lords · Grand Committee · 12 December 2011 · The Commercial Secretary to the Treasury (Lord Sassoon)
My Lords, these regulations amend the Open-Ended Investment Companies Regulations 2001 to introduce a protected cell regime for open-ended investment companies, or OEICs. They will ensure the segregation of liabilities of different sub-funds held under the same OEIC umbrella company so that investors in one sub-fund will not be liable to creditors in the event of another sub-fund failing. I would like first to give a little background on why this legislation is needed. Open-ended investment companies are one of two major forms of pooled investment fund. UK regulations for OEICs were first…

How Parliament handled it

Parliament's Statutory Instruments service records procedure from May 2017 onwards, and this instrument predates it. That is a limit of the source, not a statement that nothing happened.

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