Collective investment schemes (CIS)

This Overview provides a guide to the Financial Services content within the Collective Investment Schemes (CIS) subtopic, with links to appropriate materials.

What is a collective investment scheme?

A collective investment scheme (CIS) is an investment fund used for collective investment by investors. Investors’ contributions (usually cash) are invested in underlying assets on a pooled basis by an investment manager. A CIS can be open-ended or closed-ended or a hybrid form. Section 235 of the Financial Services and Markets Act 2000 (FSMA 2000) defines a CIS as: 'any arrangements with respect to property of any description, including money, the purpose or effect of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income'. For further information on what constitutes a CIS, available exemptions, and the treatment of regulated and unregulated CIS (UCIS), see Practice Note: Collective investment schemes—essentials.

Certain activities

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