Our latest Funds and asset management regulatory news supplements our General regulatory news with items specific to the funds and asset management industry. Read both to keep abreast of recent regulatory developments.

Contents

• Draft Bearer Certificates (Collective Investment Schemes) Regulations 2020

Draft Bearer Certificates (Collective Investment Schemes) Regulations 2020

A draft version of the Bearer Certificates (Collective Investment Schemes) Regulations 2020 have been published, together with an explanatory memorandum.

The Regulations amend the Financial Services and Markets Act 2000 (FSMA) to prohibit bearer certificates for all collective investment schemes based in the UK. They also include a provision for converting or cancelling existing bearer certificates within a year of the Regulations coming into force, the payment of dividends or other distributions during that year, and giving notice to those who hold bearer certificates.

The Regulations are due to come into force on 1 January 2021.

Regulation 48 of the Open-Ended Investment Companies Regulations 2001 already prohibits most businesses in the UK from issuing bearer certificates.

Abolishing bearer certificates, or otherwise implementing measures to prevent their misuse, is required under international standards on anti-money laundering and tax transparency. The Regulations close a technical loophole that still allowed certain collective investment schemes to issue bearer certificates.

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