Authorised investment funds (AIFs): genuine diversity of ownership condition (GDO): what information should HMRC consider in respect of the continuing requirement under Condition C of the GDO
Where the fund documents meet Conditions A and B (see CTM48160) (and clearance has been given to a newly established fund on the basis of meeting these two conditions) then it is expected that Condition C will normally be met as well, since the fund’s own documentation will require this in accordance with Condition A.
In any case where it is clear that there are, in fact, a substantial body of unconnected investors in a fund then HMRC will generally assume, without further enquiries, that this condition must have been met in practice, in order to achieve that result.
If there is reason to believe that Condition C has not been met then an officer should check all public and other documentation available (to HMRC) on the fund, to determine the practices of marketing and providing information to investors. If it still believed that the fund has not satisfied Condition C in accordance with the relevant statements in the fund documents then full details of the case should be submitted to CTIAA, who will advise on further steps.