Financial Wealth Ideas

Unlike unit trusts do not have the right to permanently produce or buy their own shares. It has a permanent charter capital, which can be changed only from time to time in connection with the shareholders of the decision on increasing it (similar to an American investment company closed-end). Shares of companies of this type are listed on the stock exchange. This is a normal corporation registered under the Companies Act, with all the features characteristic of corporate governance. The main difference from ordinary corporations was simply that if the funds were invested in the latest machinery, equipment, etc., the tools of investment trusts - in the securities. Like unit trusts, investment trusts - it is also a very large group of institutions focused on a variety of types of investors. Open-ended investment companies From this year to replace the unit trusts are starting to come open investment companies. Believed that investment in public investment companies will be more popular than the unit investment trust, and then replace them. Association unit trusts and mutual funds requires that the public investment company in the next few years, became dominant in the field of unit trusts, and by mid-1999 are likely to actually stay a little mutual trust. Fund managers argue that open investment companies more easily manage and easier for investors to understand their pricing structure. The Government has made this change due to the fact that shares of these funds easier to sell in other European countries, as these investment instruments are well known in continental Europe. If the unit trusts are valid under the laws of Great Britain on the trust companies, the open-ended investment companies operated in accordance with European Union directives on predpriyatiyahkollektivnogo invest in securities "from 1985. This directive was designed to promote the spread of collective investment schemes in the EU, provided they satisfy the minimum requirements. These requirements should become an essential part of the legislation and regulations of the Member States, each of which shall have the right to establish more detailed rules and regulations. However, they must meet the minimum requirements and do not restrict competition between the States Parties. The Directive obliges Member States to establish and observe the following requirements. Collective investment schemes should receive the credentials from the appropriate regulatory body, and management companies, investment companies and depository must have reasonably good reputation and experience in relevant field. Depository - a structure that is responsible for safekeeping the assets of a company or fund and enforcement of laws and rules of the scheme. Control Company is not entitled to act as the Management Company and the Depositary at the same time, while the latter should not engage in any other activity, in addition to the management of collective investment schemes. Similarly, the depository subject to public control and to ensure sufficient financial and professional guarantees. The directive also establishes the rules of disclosure to investors and States parties, including the publication and updating of prospectuses, annual and semi-annual accounting reports, including information provided by the Directive. The latest versions of all these documents should be offered to investors prior to the signing of the contract. Similarly, when public investment company plans to undertake marketing of its units in the country, a resident of which it is, it should provide the regulatory authorities a certificate of authority, rules of the fund, prospectus, the last year and a half records and marketing plan for each Member State. Country of residence where the company is entitled to a period of two months from the receipt of proposals for the sale of shares in the scheme, Member States decided to refuse its approval.