Laura WilesThe FCA has published a Handbook Notice describing changes to COLL as set out in the Collective Investment Schemes Sourcebook (Concentration Limits) Instrument 2025, which came into force 31 January 2025.
Following a consultation, the FCA has made changes to COLL 5.2 and COLL TP 1.1 to amend an existing rule that sets limits on the ability of a UCITS scheme to hold units of others CISs (“second schemes”).
The rule aims to reinforce risk diversification in a UCITS fund of funds – the changes clarify how it applies to umbrella / sub-fund structures and disapply the rule in certain situations where the investing UCITS scheme and second scheme are managed by the same firm.