s 261E Authorised contractual schemes : holding of units
(A1) This section sets out requirements for the purposes of section 261D(1)(a) (authorisation orders). (1) The participants in the scheme must be entitled to have their units redeemed in accordance with the scheme at a price— (a) related to the net value of the property to which the units relate; and (b) determined in accordance with the scheme. (2) The scheme must not allow units in the scheme to be issued to anyone other than— (a) a professional investor; (b) a large investor; or (c) a person who already holds units in the scheme. (3) The scheme must require the operator, if it becomes aware that units have become vested in a person to whom as a result of subsection (2) the units could not have been issued, to redeem the units as soon as practicable. (4) In subsection (2)— “professional investor” means a person who falls within one of the categories (a) to (d) of paragraph 3 of Schedule 1 to the markets in financial instruments regulation ; and “large investor” means a person who, in exchange for units in the scheme, makes a payment of, or contributes property with a value of, not less than £1,000,000.