Investment trusts: approval procedures: provisional approval
A newly established investment trust may seek provisional approval before the end of its first accounting period. If you receive a claim for approval in these circumstances, you should obtain the prospectus and check that it:
- states that the directors intend to ensure that the company will satisfy all the conditions in section 842 ICTA 1988 (CTM47205 onwards);
- gives details of the share capital and states that the acceptance of applications is conditional upon the whole of the ordinary share capital being included in the official UK list within the meaning of Part 6 Financial Services and Markets Act 2000; and
- confirms that the company is resident in the United Kingdom.
- You may then grant provisional approval, but you must make it clear that such approval is contingent upon all of the conditions in section 842 ICTA 1988 being met for the whole of the accounting period and that this can only be determined on the facts after the end of that accounting period.