These regulations are the Trustee Companies (Group Investment Funds: Disclosure of Expenses and Management Fees) Regulations 2003.

These regulations come into force on 1 July 2003.

(1) In these regulations, unless the context otherwise requires,—

(2) Any term or expression that is not defined in these regulations, but that is defined in the Act, has the meaning given to it by the Act.

(1) A trustee company must make disclosure in accordance with these regulations if an investment of funds belonging to an estate administered by the trustee company is made, or is intended to be made, in a group investment fund kept by the trustee company.

(2) This regulation is subject to the dispensations described in regulations 12 to 15.

(1) Disclosure must be made in respect of every qualifying beneficiary who holds a qualifying interest at the specified date.

(2) Despite subclause (1), initial disclosure does not need to be made in respect of a qualifying beneficiary if—

• (a) there is a change in the qualifying interest of that beneficiary; and

• (b) initial disclosure has already been made in respect of that beneficiary.

(3) Nothing in these regulations prevents disclosure being made in respect of any other person.

(1) Disclosure is made in respect of a qualifying beneficiary,—

• (a) if the qualifying beneficiary is a child, by giving a disclosure statement to the parent or legal guardian; or

• (b) if a qualifying beneficiary's qualifying interest is subject to a property order under Part 3 of the Protection of Personal and Property Rights Act 1988, by giving a disclosure statement to the manager of the property subject to the order; or

• (c) in any other case, by giving a disclosure statement to the qualifying beneficiary.

(2) The disclosure statement to be given under subclause (1) to a parent, legal guardian, manager, or qualifying beneficiary (the recipient) must be given—

• (a) by personal delivery; or

• (b) by sending it by pre-paid post to the last known place of residence or business of the recipient; or

• (c) by any other means permitted by law for the service of notices; or

• (d) by any other means consented to by the recipient.

(3) Disclosure is made,—

• (a) if a disclosure statement is given in the manner described in subclause (2)(b), at the time when the disclosure statement would have been delivered in the ordinary course of post; and

• (b) if a disclosure statement is given in the manner described in subclause (2)(c), at the time (if any) deemed by the law permitting the service of notices in that way.

A disclosure statement must be in writing.

(1) A disclosure statement must—

• (a) specify the name or number, or both, of each group investment fund referred to in the statement (the nominated fund); and

• (b) provide a general description of the investment purpose of each nominated fund at the specified date; and

• (c) state that each nominated fund is kept by the trustee company; and

• (d) specify which of the following charges are or may be payable to the trustee company or the nominated fund at the specified date by estates investing in that fund (whether directly or indirectly, including by deduction):

  • (i) expenses:

  • (ii) fees:

  • (iii) entry, withdrawal, early termination, switching, sale, or other charges; and

• (e) specify any qualifications or restrictions at the specified date on the right to make immediate withdrawals from a nominated fund, including, but not limited to, the following:

  • (i) a fixed period of investment:

  • (ii) a required period of notice:

  • (iii) if other than daily, the frequency of the dates on which withdrawals may be made.

(2) The charges referred to in subclause (1)(d), or the minimum or maximum amount of those charges, must be expressed at the specified date in a disclosure statement as a percentage of the capital of a nominated fund.

(3) Nothing in this regulation prevents a disclosure statement including any other information.

A disclosure statement must specify a statement date, which must not be earlier than 1 month before the date the statement is given in respect of the qualifying beneficiary.

(1) An initial disclosure statement may specify 1 or more group investment funds.

(2) Initial disclosure is made only in respect of a fund specified in an initial disclosure statement.

(1) An ongoing disclosure statement must identify every group investment fund specified in the statement in which estate money subject to a qualifying interest is invested at the specified date.

(2) Ongoing disclosure is made in respect of every fund specified in an ongoing disclosure statement identified under subclause (1).

(1) The trustee company must make ongoing disclosure,—

• (a) in any case where the accounting period for the estate to which the ongoing disclosure relates is 12 months or less, at the time of, and on each occasion of, the issue of financial statements for that estate; or

• (b) in any other case, at least once a year commencing from the date the disclosure statement was given on the first occasion that initial disclosure was made in respect of the estate or the most recent occasion on which ongoing disclosure was made.

(2) Despite subclause (1), the trustee company is not required to make ongoing disclosure,—

• (a) for cases referred to in subclause (1)(a), in respect of any accounting period ending on or before 31 December 2003; or

• (b) if, at the time disclosure would otherwise be required, none of the funds belonging to the estate to which the disclosure relates are invested in a group investment fund kept by the trustee company.

(1) The trustee company is not required to make initial disclosure in respect of a temporary or continuing investment for the period of 3 months from the establishment date or the date these regulations come into force, whichever is the later.

(2) In this regulation,—

(1) If, after the first occasion initial disclosure is made for an investment of funds belonging to an estate, a beneficiary attains a qualifying interest, the trustee company is not required to make initial disclosure in respect of that beneficiary for the period of 3 months from becoming aware that the qualifying interest has been attained.

(2) Nothing in this regulation requires initial disclosure to be made in respect of a change of a qualifying interest to which regulation 5(2) applies.

The trustee company is not required to make ongoing disclosure in respect of a qualifying beneficiary to whom, in accordance with the requirements of—

• (a) Part 3 of the Financial Markets Conduct Act 2013 and regulations made under that Act, a product disclosure statement was given; or

• (b) sections 33 and 37A of the Securities Act 1978 and regulations made under that Act, an investment statement was issued.