How has the implementation of MiFID affected the provisions relating to the promotion of UCISs in the UK?
In the UK, the promotion of UCISs is restricted by section 238 of FSMA4. This provides that an authorised person may not communicate an invitation or inducement to participate in a collective investment scheme unless the scheme is an authorised unit trust scheme, a scheme constituted by an authorised open ended investment company, a recognised scheme, or otherwise falls within an exemption made under section 238 or 239 of FSMA (the CIS Exemption Order) or the UCIS exemptions rules made by the FSA (COBS 4.12). So, UCISs may not be promoted to the public by authorised firms unless they fall within one of the exemptions. Unauthorised persons, including some regulated financial institutions abroad, are not directly subject to the section 238 FSMA restriction on the promotion of UCISs. But the financial promotion restrictions in section 21 FSMA prohibits them from communicating a financial promotion other than one which is exempt5 or approved by an authorised person. Authorised persons are
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