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General

When a PAIF breaches any of the conditions of the PAIF regime (see IFM04500) then the regulations impose a duty on the PAIF to take certain actions.

Notifying breaches of conditions of entry into the PAIF regime (regulation 69Z26 SI 2006/964)

Where a PAIF fails to meet conditions of the regime, its manager must provide the following information to HMRC:

• the date on which the condition first ceased to be met and the date (if any) on which the condition was satisfied again;
• details of the condition that was breached;
• the nature of the breach (how the condition was breached); and
• what (if anything) the manager has done to prevent the breach recurring.

The above information must be provided as soon as reasonably practicable following the manager becoming aware of such a failure in respect of the PAIF.

Notifying distributions made to or in respect of holders of excessive rights (regulation 69Z27 SI 2006/964)

Where the manager of a PAIF becomes aware that it has made distributions to, or in respect of a holder of excessive rights (see IFM04170 � the corporate ownership conditions), the manager must provide the following information to HMRC as soon as reasonably practical:

• the name of every person to whom, or in respect of whom, such distribution was made;
• the address of every such person;
• the amount or value of the distribution;
• particulars of those personsâ€� interests in the OEIC, including details of the percentage of rights to the net asset value of the fund represented by the shares held by those persons;
• the steps the manager took to prevent the acquisition, by the holder of excessive rights, of an excessive holding; and
• the steps the manager has taken, or is taking, to ensure that there is no longer a holder of excessive rights.

Where should the required information be sent to?

The information required under regulation 69Z26 and 27 SI 2006/964 should be submitted to HMRC’s Collective Investment Schemes Centre.

Notice to provide information to HMRC (regulation 69Z28 SI 2006/964)

If HMRC believes that a PAIF has:

• not met or may not meet any of the conditions of the regime; or
• has not rectified a breach of a condition;

then HMRC may issue a notice to the manager of the PAIF concerned requiring the manager to provide any of the information referred to above. The manager will then have a period of 28 days, beginning from the day on which the notice is served, to comply with the notice.