COLL 1.2 Types of authorised fund

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 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)
   1. (a)

      5Non-UCITS retail schemes are schemes that do not comply with all the conditions set out in the UCITS Directive.

   2. (b)

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

   3. (c)

      5Under article 43 of AIFMD, where an AIF can be marketed to retail clients, Member States may impose stricter requirements on the AIFM or the AIF than the requirements that apply to an AIF marketed only to professional clients.

   4. (d)

      5This sourcebook contains the stricter requirements for 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 conditions set out in the UCITS Directive.

   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)

      5Under article 43 of AIFMD, where an AIF can be marketed to retail clients, Member States may impose stricter requirements on the AIFM or the AIF than the requirements that apply to an AIF marketed only to professional clients.

   4. (d)

      5This sourcebook contains the stricter requirements for 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)).

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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 scheme under section 264 of the Act (see COLL 5.6.27R and COLL 5.8.2AR).