IFM17430 | Genuine Diversity of Ownership (GDO): advance clearance procedure: Relying on clearance

A fund may only rely on a clearance if the relevant statements in fund documents are in accordance with such statements made in the documents provided to HMRC with the fund’s clearance application. The fund must not act in any way that contravenes such statements.

If the fund materially amends any of the documents sent with its original application then it must make a new application if it wishes to rely on the clearance.

The fund will be able to rely on the clearance from the date on which the fund documents became effective in the form supplied to HMRC for clearance (even if that is earlier than the date clearance was given).

If GDO clearance is given for one purpose, then it applies for others. For example, if a qualified investor scheme (see IFM02300 onwards) has obtained GDO clearance it will also be treated as a diversely owned AIF if it carries out investment transactions (see IFM02260).