The Treasury may not make regulations under section 271A approving a country or territory and specifying a description of collective investment scheme unless satisfied that the equivalent protection test is met.
The equivalent protection test is met if the protection afforded to participants or potential participants in the schemes by the law and practice of the country or territory is at least equivalent to that afforded to participants or potential participants in comparable authorised schemes by the law and practice of the United Kingdom under which such schemes are authorised and supervised.
In this section—
"comparable authorised schemes" means whichever of the following the Treasury consider to be the most appropriate—
(a)authorised unit trust schemes;
(b)authorised contractual schemes which are co-ownership schemes;
(c)authorised contractual schemes which are partnership schemes;
(d)authorised open-ended investment companies;
(e)any two or more of the kinds of collective investment scheme mentioned in paragraphs (a) to (d);
"participants" means participants in the United Kingdom.