§ Mr. CousinsTo ask the Chancellor of the Exchequer if he will list the(a) tax and (b) legal definitions of his proposals for the investment products oeics and puncs. [69993]
§ Ms HewittOpen ended investment companies (oeics) are defined in the Open Ended Investment Companies (Investment Companies with Variable Capital) Regulations 1996, laid under section 2(2) of Schedule 2 to the European Communities Act 1972.
For tax purposes oeics are defined in section 468(10) of the Income and Corporation Taxes Act 1988 (as that section is inserted by Regulation 10(4) of the Open Ended Investment Companies (Tax) Regulations SI 1997 No. 1154) under which an oeic is defined as an open ended investment company within the meaning given by section 75(8) of the Financial Services Act 1986 which is incorporated in the United Kingdom.
The Financial Services and Markets Bill consultation document issued in July 1998 suggested that the Bill could give powers to provide for the incorporation of 355W unauthorised oeics which it suggested be known as pooled unauthorised companies (puncs). The Treasury will consult in due course on the main features of puncs, including how they could be defined.