Reset to Today

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004.

Content Options:

Add to favourites

View Options:

More Resources:

External link Handbook Publications

COLL 1.2 Types of authorised fund

Types of authorised fund

COLL 1.2.1RRP

An application for an authorisation order must propose that the scheme be one of the following types:

  1. (1)

    a UCITS scheme;

  2. (2)

    a non-UCITS retail scheme, including:3

    33
    1. (a)

      a non-UCITS retail scheme operating as a fund of alternative investment funds (FAIF); and3

    2. (b)

      a non-UCITS retail scheme which is an umbrella with sub-funds operating as:3

      1. (i)

        FAIFs;3

      2. (ii)

        standard non-UCITS retail schemes; or3

      3. (iii)

        a mixture of (i) and (ii); or3

  3. (3)

    a qualified investor scheme.

Umbrella schemes

COLL 1.2.1AGRP

2Any authorised fund, except for an ACS that is a limited partnership scheme,4 may be structured as an umbrella with separate sub-funds.

[Note: article 1(2) second paragraph of the UCITS Directive]

Types of authorised fund - explanation

COLL 1.2.2GRP
  1. (1)

    UCITS schemes have to comply with the conditions necessary in order to enjoy the rights available under the UCITS Directive. Such schemes must in particular comply with:

    1. (a)

      COLL 3.2.8 R (UCITS obligations); and

    2. (b)

      the investment and borrowing powers rules for UCITS schemes set out in COLL 5.2 to COLL 5.5 .

  2. (2)

    Non-UCITS retail schemes are schemes that do not comply with all the conditions set out in the UCITS Directive. Such schemes could become UCITS schemes provided they are changed, so as to comply with the conditions set out in the UCITS Directive. Non-UCITS retail schemes operating as FAIFs have wider powers to invest in collective investment schemes than other non-UCITS retail schemes.1

  3. (2A)

    A non-UCITS retail scheme may also be structured as an umbrella with sub-funds operating as:3

    1. (a)

      FAIFs;3

    2. (b)

      standard non-UCITS retail schemes; or3

    3. (c)

      a mixture of (a) and (b).3

      In these cases, rules relating to investment powers and borrowing limits apply to each sub-fund as they would to a scheme.3

  4. (3)

    Qualified investor schemes may only be promoted to professional investors on the same terms as unregulated collective investment schemes. Such schemes could change to become non-UCITS retail schemes or UCITS schemes.

  5. (4)

    The changes referred to in (2) and (3) require approval by the FCA and further information on that process is provided in4COLLG 3A.1.6 G4 (Notification of changes to unit trusts (sections 251 and 252A4)) and 4COLLG 4A.1.3 G4 (Notification of changes to ICVCs (Regulations 21 and 22A4)).

    44

UCITS schemes

COLL 1.2.3RRP

2A UCITS scheme is deemed to be established in the United Kingdom, irrespective of whether it has been established under the laws of England and Wales, Scotland or Northern Ireland.

[Note: article 4 of the UCITS Directive]

Master UCITS

COLL 1.2.4RRP

2A master UCITS that has two or more feeder UCITS as its only unitholders satisfies the requirement that a UCITS scheme must invest capital raised from the public.

[Note: article 58(4) of the UCITS Directive]