PART 9
COLLECTIVE INVESTMENT SCHEMES
99. Interpretation
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(1) In this Part—
“collective investment scheme” means—
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(a) a unit trust;
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(b) an investment company;
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(c) investment contracts, investment programmes or any other arrangements with respect to property of any description, including money, the purpose or effect of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income; and
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(d) any scheme that the Commission may deem to be a collective investment scheme for the purpose of this Act;
“custodian” means any person to whom the property of the scheme is entrusted for safekeeping;
“investment company” means a scheme under which—
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(a) the property of the scheme belongs beneficially to, and is managed by or on behalf of, the company having as its purpose the investment of its funds with the aim of spreading investment risk and giving its members the benefit of the results of the management of those funds by or on behalf of that company; and
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(b) the rights of the participants are represented by shares in or securities of that company which—
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(i) the participants are entitled to have redeemed or repurchased by or out of funds provided by that company, or
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(ii) can be sold by the participants on a recognised securities exchange at a price related to the value of the property to which they relate;
“participants” means the persons who participate in a collective investment scheme, and includes members of an investment company;
“trustee”, in relation to a unit trust means the person holding the property of the scheme on trust for the participants;
“unit trust” means a scheme under which the property of the scheme is held on trust for the participants and where—
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(a) the property of the scheme belongs beneficially to the participants and is managed on their behalf by a management company; and
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(b) the rights of the participants are represented by units in the scheme which the participants are entitled to have redeemed or repurchased from them by, or out of moneys provided by, the management company;
“units” means the rights or interests (however described) of the participants in a collective investment scheme.
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(2) The arrangements referred to under the definition of collective investment scheme in subsection (1)(c) must be such that the participants do not have day to day control of the management of the property of the scheme and the arrangements must satisfy at least one of the following conditions—
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(a) the contributions of the participants and the profits or income out of which payments are to be made to them are pooled;
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(b) the property in question is managed as a whole by or on behalf of the operator of the scheme.
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(3) The following are not collective investment schemes—
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(a) arrangements operated by a person otherwise than by way of business;
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(b) arrangements the purpose of which is the provision of clearing services and which are operated by a person licensed for that purpose by the Commission;
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(c) contracts of insurance;
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(d) pension schemes; and
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(e) such other arrangements as may be determined by the Commission.