Content Options

View Options

Status: You are viewing the version of the handbook as on 2012-01-07.

COLL 1.2 Types of authorised fund

Types of authorised fund


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 a non-UCITS retail scheme operating as a fund of alternative investment funds (FAIF); or1

  3. (3)

    a qualified investor scheme.

Umbrella schemes


2Any authorised fund 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

  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. (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.

  4. (4)

    The changes referred to in (2) and (3) require approval by the FSA and further information on that process is provided inCOLLG 3.1.5 G (Notification of changes to unit trusts (section 251)) and COLLG 4.1.3 G (Notification of changes to ICVCs (Regulation 21)).

UCITS schemes


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


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]