Guidance

1. A Person making an Offer of Securities to the Public in relation to Units of a Fund is exempt from the requirements in Part 12 of the FSMR and the Rules made for the purposes of that Part which deal with Prospectuses.
2. A Person having or intending to have Units of a Fund admitted to trading on a Recognised Body is required to comply with Part 12 of the FSMR and the Funds Rules made for the purposes of that Part in the manner and circumstances prescribed in these Rules. Chapter 3 contains the requirements that apply to a Person who applies to have, or has or had, Units admitted to trading on a Recognised Body.
3. The Regulator has the power, pursuant to section 59(c) of the FSMR, to prescribe certain communications to be Exempt Communications. Such communications are not subject to the prohibition in section 58(1) of the FSMR as they fall outside the definition of an "Offer of Securities to the Public" in section 59 of the FSMR.
4. The Regulator also has the power under section 61(3) of the FSMR to prescribe certain types of:
a. Offers of Securities to the Public as "Exempt Offers"; and
b. Securities to be "Exempt Securities".
Exempt Offers and Exempt Securities are not subject to the prohibition in section 58(1) of the FSMR and hence do not require a Prospectus.