Schedule 9: Collective investment schemes authorised in approved countries Part 1: Provisions to be inserted in Chapter 5 of Part 17 of the Financial Services and Markets Act 2000 271B Approval of country: equivalent protection afforded to participants
This section sets out one of the restrictions of HM Treasury exercising the powers to approve a country or territory under section 271A.
	Section 271B(1)-(2) describes the equivalent protection test which must be met for HM Treasury to approve a country or territory. "Equivalent protection" means that overseas collective investment schemes do not have to be subject to exactly the same law and practice as UK schemes, but the law and practice of that country or territory must provide at least equivalent protection to investors or potential investors as that afforded to investors or potential investors in comparable UK schemes, by the law and practice of the UK under which such schemes are authorised and supervised.
	Section 271B(3) sets out what HM Treasury can consider to be a ‘comparable authorised scheme’ when considering whether a description of schemes within a country or territory provides equivalent protection for UK investors. The definition of ‘comparable authorised scheme’ sets out an exhaustive list of the types of comparable schemes that are authorised in the UK by the FCA.