1. (1)

   This sourcebook, except for COLL 9 (Recognised schemes), applies to:

   1. (a)

      investment companies with variable capital (ICVCs);

   2. (b)

      ACDs, other directors and depositaries of ICVCs;

      3
   3. (c)

      managers and trustees of authorised unit trust schemes (AUTs); and63

      4
   4. (cA)

      authorised fund managers, depositaries and nominated partners of authorised contractual schemes (ACSs).6

      4
   5. (d)

      [deleted]6

      3
2. (2)

   COLL 9 applies to operators of schemes that are recognised schemes and to those seeking to secure recognised status for such schemes.

3. (3)

   COLL 11.5 (Auditors) also applies to auditors of master UCITS and feeder UCITS which are UCITS schemes.3

4. (4)

   [deleted]6

   3
5. (5)

   COLL TP 1.1(48) contains transitional provisions that apply in relation to any scheme that will need to become a regulated money market fund in accordance with the Money Market Funds Regulation, and which operates as a scheme prior to 21 July 2018.5

1. (1)

   The general purpose of this sourcebook is to contribute to the FCA meeting its statutory objectives of the protection of consumers. It provides a regime of product regulation for authorised funds, which sets appropriate standards of protection for investors by specifying a number of features of those products and how they are to be operated.

2. (2)

   In addition, this sourcebook implemented6 part of the requirements of the UCITS Directive6relevant to authorised funds and management companies,3 along6 with other requirements implemented in other parts of the Handbook.

   22

The Collective Investment Schemes Information Guide COLLG provides some general background material on the regulatory structure surrounding scheme regulation in the UK.

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

1. (1)

   UCITS schemes6must 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)
   1. (a)

      5Non-UCITS retail schemes are schemes that do not comply with all the conditions necessary to be a UCITS scheme6.

   2. (b)

      5A non-UCITS retail scheme is an AIF and must be managed by an AIFM.

   3. (c)

      5The UK may, under the legislation which implemented6 article 43 of AIFMD, 6impose stricter requirements on an AIFM or an AIFmarketed to retail clients6 than the requirements that apply to an AIFmarketed only to professional clients.

   4. (d)

      5This sourcebook contains the stricter requirements for an AIF which is6 a non-UCITS retail scheme.

   5. (e)

      5A full-scope UK AIFM must also comply with the requirements in FUND and any other applicable provisions of AIFMD.

   6. (f)

      5Non-UCITS retail schemes could become UCITS schemes, provided they are changed, so as to comply with the necessary conditions6.

   7. (g)

      5Non-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)
   1. (a)

      5Qualified investor schemes may only be promoted to:

      1. (i)

         5professional clients; and

      2. (ii)

         5retail clients who are sophisticated investors,

      5on the same terms as non-mainstream pooled investments.

   2. (b)

      5A qualified investor scheme is an AIF and must be managed by an AIFM.

   3. (c)

      [deleted]6

      5
   4. (d)

      5This sourcebook contains the stricter requirements for an AIF which is6 a qualified investor scheme.

   5. (e)

      5A full-scope UK AIFM must also comply with the requirements in FUND and any other applicable provisions of AIFMD.

   6. (f)

      5Qualified investor 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

1. (1)

   5Except for (2), all provisions of the Handbook that apply:

   1. (a)

      to a feeder UCITS are also applicable to a pension feeder fund that is constituted as a UCITS scheme; and

   2. (b)

      to a feeder NURS are also applicable to a pension feeder fund that is constituted as a non-UCITS retail scheme.

2. (2)

   A pension feeder fund may not invest in units of an EEA UCITS scheme unless that scheme is a recognised scheme6(see COLL 5.6.27R and COLL 5.8.2AR).