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); 3

      4
   4. (cA)

      authorised fund managers, depositaries and nominated partners of authorised contractual schemes (ACSs); and4

   5. (d)

      to the extent indicated, UK UCITS management companies operating EEA UCITS schemes.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)

   This sourcebook also applies to EEA UCITS management companies of UCITS schemes to the extent required by the UCITS Directive.3

3An EEA UCITS management company that is providing collective portfolio management services for a UCITS scheme from a branch in the United Kingdom, or under the freedom to provide cross border services, is advised that where it operates a UCITS scheme as its designated management company, it meets the Glossary definition of an "ACD" of an ICVC or a "manager" of an AUT or an authorised contractual scheme manager of an ACS,4 which in either case is a UCITS scheme. Such firms should be aware that provisions in this sourcebook that apply to an ACD,4 a manager or an authorised fund manager4 of a UCITS scheme accordingly apply to them, unless otherwise indicated: see COLL 12.3 (EEA UCITS management companies) for further details.

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 implements part of the requirements of the UCITS Directive to meet EU law 2 obligations relevant to authorised funds and management companies,3 with other requirements implemented in other parts of the Handbook.

   2

3 COLL 12 provides for the application of COLL in relation to the management company passport under the UCITS Directive. It explains how the passporting regime applies to both UK UCITS management companies and EEA UCITS management companies when providing collective portfolio management services on a cross-border basis. It also explains how the product passport (for UCITS) operates and how UCITS schemes may be marketed in other EEA States.

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 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