Authorised unit trust authorisation and winding-up
Authorised unit trust authorisation and winding-up

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Authorised unit trust authorisation and winding-up
  • Authorisation of an authorised unit trust (AUT)
  • Winding-up an authorised unit trust or sub-fund

Authorisation of an authorised unit trust (AUT)

What is an AUT?

A unit trust is a type of collective investment scheme (CIS) in which the assets are held by a trustee for the benefit of the investors (the unitholders) pursuant to the terms of the a trust deed. CIS are defined in section 235 of Financial Services and Markets Act 2000 (FSMA 2000). An authorised unit trust (AUT) is a unit trust scheme that is authorised under FSMA 2000, s 243 by the Financial Conduct Authority (FCA).

AUT's may be formed as single funds or umbrella funds accommodating a number of sub-funds. There are three types of authorised fund available in the UK and an AUT can be used as the legal vehicle for each type of these funds:

  1. undertakings for collective investment in transferable securities (UCITS)–available to the general public (see Practice Note: Undertakings for Collective Investment in Transferable Securities—essentials)

  1. Non-UCITS retail schemes (NURS)–available to the general public and a type of alternative investment fund (AIF) under the Alternative Investment Fund Managers (Directive 2011/61/EU) (AIFMD) (see Practice Note: Non-UCITS retail schemes (NURS))

  1. Qualified investor schemes (QIS)–only available to professional or sophisticated investors and a type of AIF under the AIFMD (see Practice Note: Qualified investor schemes (QIS))

It should be noted that a property authorised investment fund (PAIF), cannot