(1) Neither the management company nor the trustee under an authorised unit trust scheme may be replaced by another management company or trustee (as the case may be) without the approval of the Bank.

(2) The trust deed of an authorised unit trust scheme shall specify the conditions under which there may be effected, and the procedure to be followed with respect to, the replacement of the management company or trustee under the scheme with another management company or trustee (including such a replacement by the Bank under subsection (3)) and shall contain provisions to ensure the protection of unit-holders in the event of any such replacement.

(3) The Bank may, where it appears to it to be desirable in the interests of unit-holders or potential unit-holders in an authorised unit trust scheme to do so, replace the management company or trustee under the scheme with another management company or trustee.

(4) Where the Bank proposes to replace a management company or trustee under subsection (3) it shall give the management company or trustee, as the case may be, notice of its intention to do so, which notice shall contain a statement of the reasons for which the Bank proposes to act and of the right of the management company or trustee (as the case may be) under subsection (5) to make representations.