Unregulated collective investment schemes—essentials
Produced in partnership with Lora Froud of Macfarlanes

The following Financial Services practice note produced in partnership with Lora Froud of Macfarlanes provides comprehensive and up to date legal information covering:

  • Unregulated collective investment schemes—essentials
  • What are unregulated collective investment schemes?
  • Overlap between a UCIS and an AIF
  • Location
  • Property
  • Structure
  • Unit trust schemes
  • Limited partnerships
  • Risks associated with unregulated collective investment schemes
  • UCIS regulatory framework
  • More...

Unregulated collective investment schemes—essentials

What are unregulated collective investment schemes?

In the UK, an unregulated collective investment scheme (UCIS) is any collective investment scheme (CIS) that is not regulated by the Financial Conduct Authority (FCA) as either an authorised (regulated) fund or a recognised scheme. For further information on authorised or recognised funds, see Practice Notes: Regulated collective investment schemes and Recognised collective investment schemes.

Firms and individuals can check the FCA Register  to find out whether a collective investment scheme is authorised or recognised.

In his judgment in the Supreme Court case, Asset Land Investment Plc v The Financial Conduct Authority, Lord Sumption subjected the definition of ‘collective investment scheme’ in FSMA 2000, s 235 to thorough analysis (see para 65 onwards).

The fact that a CIS is unregulated does not mean that no rules apply.

For further information on what constitutes a CIS, see Practice Note: What is a collective investment scheme?

Overlap between a UCIS and an AIF

A UCIS will also often be an alternative investment fund (AIF) for the purposes of the Alternative Investment Fund Managers Directive (AIFMD). AIFMD provides a pan-European regulatory framework for the regulation and supervision of AIF managers (AIFMs).

Location

A UCIS can be established, operated and/or managed in the UK or in a jurisdiction outside the UK.

Property

UCISs are not subject to the restrictions on underlying property that apply to regulated CISs and

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