Investment Funds, Companies and Miscellaneous Provisions Act 2005

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SCHEDULE

Amendment of European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2003 ( S.I. No. 211 of 2003 ) as Amended

Section 77 .

Amendment of Regulation 2(1)

1. Regulation 2(1) is amended—

(a) by inserting the following before “transferable securities”:

“ ‘sub-fund’ means a separate portfolio of assets maintained by a UCITS in accordance with its trust deed, deed of constitution or articles;”, and

(b) by substituting the following for the definition of “umbrella fund”:

“ ‘umbrella fund’ means a UCITS which is divided into a number of sub-funds, and each sub-fund shall be treated as a separate UCITS for the purposes of the application of Part VII of these Regulations;”.

Addition of new Regulation 32A

2. The following is inserted after Regulation 32:

Amendment of Regulation 35

3. Regulation 35(1)(b) is amended by inserting the following after “section 41 (restriction on company acquiring its own shares);”:

“section 43 (treatment of shares held by or on behalf of a public limited company);

section 43A (accounting for own shares);”.

Addition of new Regulation 36F

4. The following is inserted after Regulation 36E:

Addition of new Regulation 51A

5. The following is inserted after Regulation 51:

Addition of new Regulation 79A

6. The following is inserted after Regulation 79:

“79A.—(1) Notwithstanding section 148 (2) of the Companies Act 1963 (inserted by the European Communities (International Financial Reporting Standards and Miscellaneous Amendments) Regulations 2005 ( S.I. No. 116 of 2005 )) an investment company to which chapter 1 or 2 of Part VI applies may, in respect of its individual accounts, opt to prepare those accounts in accordance with both of the following, namely—

(a) an alternative body of accounting standards, and

(b) section 149A of the Companies Act 1963 ,

as if the references in that section 149A to international financial reporting standards were references to that alternative body of accounting standards.

(2) In the application of subsections (4), (5) and (6) of section 148 of the Companies Act 1963 to an investment company which has opted under paragraph (1) to prepare its accounts in accordance with an alternative body of accounting standards—

(a) the reference in that subsection (4) to international financial reporting standards shall be read as a reference to that alternative body of accounting standards, and

(b) there shall be substituted for ‘IFRS’, in each place where it occurs in those subsections (4), (5) and (6), ‘ABAS’ (which shall be read as referring to that alternative body of accounting standards).

(3) For the purposes of this Regulation, accounts shall not be regarded as having been prepared in accordance with an alternative body of accounting standards unless the accounts concerned would, were they to have been prepared by a company or undertaking registered in the relevant jurisdiction, be regarded as having been prepared in accordance with those standards.

(4) In this Regulation—

‘alternative body of accounting standards’ means standards that accounts of companies or undertakings must comply with that are laid down by such body or bodies having authority to lay down standards of that kind in—

(a) United States of America,

(b) Canada,

(c) Japan, or

(d) any other state or territory prescribed for the purposes of the section hereafter mentioned in this paragraph,

as are prescribed under the Companies Act 1990 for the purposes of section 260A(4) (inserted by the Investment Funds, Companies and Miscellaneous Provisions Act 2005) of that Act;

‘relevant jurisdiction’ means the state or territory in which the alternative body of accounting standards concerned have effect.”.

Amendment of Regulation 85

7. Regulation 85 is amended by inserting the following after paragraph (10):

“(11) The requirements of this Regulation shall apply with appropriate modifications to auditors of a management company.”.