s 247 Trust scheme rules.
(1) The FCA may make rules (“ trust scheme rules ”) as to— (a) the constitution, management and operation of authorised unit trust schemes; (b) the powers, duties, rights and liabilities of the manager and trustee of any such scheme; (c) the rights and duties of the participants in any such scheme; and (d) the winding up of any such scheme. (2) Trust scheme rules may, in particular, make provision— (a) as to the issue and redemption of the units under the scheme; (b) as to the expenses of the scheme and the means of meeting them; (c) for the appointment, removal, powers and duties of an auditor for the scheme; (d) for restricting or regulating the investment and borrowing powers exercisable in relation to the scheme; (e) requiring the keeping of records with respect to the transactions and financial position of the scheme and for the inspection of those records; (f) requiring the preparation of periodical reports with respect to the scheme and the provision of those reports to the participants and to the FCA ; and (g) with respect to the amendment of the scheme. (3) Trust scheme rules may make provision as to the contents of the trust deed, including provision requiring any of the matters mentioned in subsection (2) to be dealt with in the deed. (4) But trust scheme rules are binding on the manager, trustee and participants independently of the contents of the trust deed and, in the case of the participants, have effect as if contained in it. (5) If— (a) a modification is made of the statutory provisions in force in the United Kingdom relating to companies, (b) the modification relates to the rights and duties of persons who hold the beneficial title to any shares in a company without also holding the legal title, and (c) it appears to the Treasury that, for the purpose of assimilating the law relating to authorised unit trust schemes to the law relating to companies as so modified, it is expedient to modify the rule-making powers conferred on the FCA by this section, the Treasury may by order make such modifications of those powers as they consider appropriate.