Unit Trusts Act, 1990
|
Authorisation of unit trust schemes. |
4.—(1) Upon application to the Bank in accordance with this section by the management company and trustee under a unit trust scheme, the Bank shall authorise the scheme if, but only if— | |
(a) the Bank is satisfied that the competence of the management company and trustee in respect of matters of the kind with which they would be concerned in relation to a unit trust scheme and their probity are such as to render them suitable to act as management company and trustee, respectively, under the scheme, | ||
(b) the management company under the scheme is a body corporate that is incorporated under the law of the State or any other member state of the European Communities, has, in the opinion of the Bank, sufficient financial resources at its disposal to enable it to conduct its business effectively and meet its liabilities and will be in a position to comply with any conditions imposed by the Bank under section 5 , | ||
(c) the trustee under the scheme is a body corporate that is incorporated under the law of the State or any other member state of the European Communities and— | ||
(i) has, in the opinion of the Bank, sufficient financial resources at its disposal to enable it to conduct its business effectively and meet its liabilities, | ||
(ii) will be in a position to comply with any conditions imposed by the Bank under section 5 , and | ||
(iii) has satisfied the Bank that it has the appropriate expertise and experience to carry out its functions under this Act, | ||
(d) the Bank is satisfied that the scheme is such that the effective control over the affairs of the management company and of the trustee under the scheme will be exercised independently of one another, | ||
(e) the Bank is satisfied that the scheme is such as to secure that every trust created in pursuance of the scheme is expressed in a deed which complies with the provisions of this Act and that the deed contains a covenant providing that the scheme will be carried on in compliance with the provisions of this Act, | ||
(f) a copy of the deed aforesaid is deposited with the Bank, and | ||
(g) the name of the scheme is not, in the opinion of the Bank, undesirable. | ||
(2) The Minister may direct the Bank to make any authorisation by it under this section subject to the imposition by it of conditions or requirements specified in his direction (being conditions or requirements which relate to such matters, which the Minister is satisfied, after consultation with the Minister for Finance and the Bank, do not constrain the prudential supervision by the Bank of a scheme) and, accordingly, the Bank shall make such authorisation subject to every condition or requirement so specified. | ||
(3) A direction under subsection (2) may relate to unit trust schemes generally, schemes of a particular class or a particular scheme. | ||
(4) The management company and trustee under an authorised unit trust scheme shall comply with any conditions or requirements imposed by the Bank under subsection (2) and which are applicable to that scheme. | ||
(5) An application for the authorisation of a unit trust scheme shall be made in writing and shall contain such information as the Bank may specify for the purpose of determining the application (including such additional information as the Bank may specify in the course of determining the application). | ||
(6) The authorisation of a unit trust scheme by the Bank shall not constitute a warranty by the Bank as to the performance of the scheme and the Bank shall not be liable for the performance or default of the scheme. |