Section 454A | Investments held by investment managers ^F1F2

(1)This section applies where—

(a)an entity (“S”) would, apart from this section, be a member of a worldwide group as a result of one or more other members of the group managing S and holding rights or interests in relation to S,^F3

(b)the entity managing S does so in the ordinary course of carrying on a business of providing investment management services, and

(c)the management of S is not coordinated to any extent with the management by any person of any other entity.

(1A)Except in a case within subsection (2), for the purposes of this Part—^F4

(a)the group does not include S (or its subsidiaries), and^F4

(b)accordingly, none of those entities is regarded as a consolidated subsidiary of any member of the group.^F4

(2)Where S is a partnership or another transparent entity, for the purposes of this Part—^F5

(a)the group does not include entities that are subsidiaries of S, and

(b)accordingly, none of those entities is regarded as a consolidated subsidiary of any member of the group.

(3)In this section “subsidiary” has the meaning given by international accounting standards.