114. Creation of an Investment Trust

(1) An Investment Trust shall be created by a Trust Deed entered into between —
(a) an Authorised Person who has a Financial Services Permission to Manage Assets or Manage a Collective Investment Fund; and
(b) an Authorised Person who has a Financial Services Permission to Act as the Trustee of an Investment Trust.
(2) The Trustee of an Investment Trust must be independent of the Fund Manager of that Investment Trust. A Trustee will not be independent of a Fund Manager if —
(a) the Fund Manager or the Trustee holds, or exercise voting rights in respect of, any Shares of the other;
(b) the Fund Manager and the Trustee have a common holding company or a common ultimate holding company;
(c) the Fund Manager or the Trustee have Directors on its Governing Body, who are also Directors of the other;
(d) the Fund Manager or the Trustee has individuals performing Controlled Functions who are also individuals performing Controlled Functions for the other; or
(e) the Fund Manager and the Trustee have been involved in the previous two years in any professional or material business dealings, other than acting as Fund Manager or Trustee respectively of any other Fund.
(3) An Investment Trust shall be formed solely for collective investment purposes.
(4) The Trust Deed shall —
(a) meet all the requirements that apply in respect of the Constitution of a Fund under the Rules made by the Regulator;
(b) set out clearly whether the Trustee is to provide the oversight function relating to the Investment Trust;
(c) confer on the Trustee all the powers that are necessary for the Trustee to discharge all its duties and perform all its functions under these Regulations and any Rules made by the Regulator; and
(d) not contain any provision which conflicts with the requirements in any Rules made by the Regulator.