IFM12555 - Offshore Funds: Reporting Funds: computation of reportable income: transactions not treated as trading: conditions

Regulations 74 and 75 of SI 2009/3001

The equivalence condition (regulation 74)

The equivalence condition will be met if the reporting fund is:

• recognised by the Financial Services Authority (‘FSA’) under one of sections 264 or 272 of the Financial Services and Markets Act 2000 (‘FSMA 2000’),
• a UCITS (‘Undertaking for Collective Investment in Transferable Securities’) fund authorised under article 5 of the “UCITS IV” Directive (Directive 2009/65/EC of the European Parliament and of The Council), or
• constituted in another EEA state, is authorised by the competent authority in that state to market to retail or professional investors and is required either by the local authority or by another binding agreement to limit its borrowing and its exposure under derivative contracts and forward transactions to 100% of its net asset value.

The genuine diversity of ownership (‘GDO’) condition (regulation 75)

Guidance on the GDO condition is available at IFM17000 onwards.