The FCA has published a webpage on the implementation of 4.2.5R (3)(ca) Collective Investment Schemes sourcebook (COLL).

The FCA states that COLL 4.2.5R (3)(ca) applies to all UCITS schemes and non-UCITS retail schemes that indicate in their name, investment objectives or fund literature (including in any financial promotions for the fund), through the use of descriptions such as ‘absolute return’, ‘total return’ or similar, an intention to deliver positive returns in all market conditions (and where there is no actual guarantee of such return). Where this is the case, the additional statements, set out at (i) to (iii) of the rule, must be made.

The rule applies from 26 January 2014, or earlier if the fund’s prospectus is updated prior to that date. If they have not already done so, UCITS schemes and non-UCITS retail schemes are encouraged to review their fund literature to ensure that it complies with the rule.

View Implementation of COLL 4.2.5R (3) (ca), 9 December 2013

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