Acronym

Question 1

What is the unit trust manager responsible for?

FRAPS SADAM

Answer 1

.
Fund Admin
Regulations / Trust Deed
must have Adequate financial resources
Promotion
Supply information to trustee when asked

                Maintain records of units
must be Authorised to conduct investment business
                Day to day running of unit trust 
                Advertising 
                Selecting Investments

Question 2

What is the trustee of a unit trust responsible for?

CLICK FOR

Answer 2

.
Check managers actions & Investments
Legal owner of assets
Independent from management group
Control assets
Key role to protect investors

must be regulated by FCA
Organise distribution of income
Register unit holders

Question 3

What 7 criteria must a REIT meet to qualify for the special tax treatment?

SCOU53 40 75 90 125

Answer 3

must be listed on a recognised Stock exchange
Closed ended
only issue of Ordinary / preference shares
must be a UK resident
It must not be controlled by 5 or fewer participants
at least 3 properties

not one can be worth more than 40% of the total capital
At least 75% of gross profits have to come from letting property.
At least 90% of rental profits must be paid to investors as a dividend within 12 months of the end of the accounting period.
Interest on borrowing must be at least 125% covered by rental income.