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 271G Determination of applications
This section sets conditions for the FCA’s power to determine applications and make an order granting a scheme recognition for the purposes of marketing into the UK pursuant to section 271A(1).
	Section 271G(1)(a) sets out that the conditions in section 271G(2) must be met, including that the scheme must be authorised in a country or territory approved by HM Treasury under section 271A, in order for the FCA to grant recognition to a scheme under section 271A. Section 271G(1)(b) provides that the FCA must grant recognition to the scheme, unless it is permitted or required to refuse an application due to the conditions set out in section 271G(3)-(4).
	Sections 271G(3) sets out the conditions under which the FCA is permitted to refuse an application under section 271A, including if the operator of the scheme has contravened requirements under FSMA. This may include an additional requirement. The FCA may also refuse a scheme’s application if the operator has given the FCA false or misleading information in purported compliance with such a requirement. Subsection (4) then sets out that even if the scheme has not contravened a requirement, the FCA must refuse an application if it is desirable for the protection of UK investors.
	Section 271G(5)-(6) sets out that the FCA must either issue a written notice granting recognition or a warning notice that it is proposing to refuse the application under section 271A within two months of the FCA receiving a complete application, containing all the information it requires, from the scheme operator in question. Section 271G(7) sets out that if the FCA receives an application which is not complete, it must notify the scheme operator that it does not consider that application complete and identify what further information it may need to be considered so.