A investment-scheme'>collective investment scheme (CIS) that is structured as a corporate vehicle (as distinct from a trust'>unit trust (UT)). An OEIC is defined in FSMA 2000, s 236 as a CIS which satisfies both:
• the ‘property condition’: the property must belong beneficially to, and be managed by or on behalf of, a body corporate (BC) whose purpose is to invest its funds with the aim of (a) spreading investment risk and (b) giving its members the benefit of the results of managing those funds by or on behalf of that body, and
• the ‘investment condition’: in relation to a BC, if a reasonable investor were to participate in the scheme he would (a) expect to be able to realise, within a period appearing reasonable to him, his investment in the scheme, and (b) be satisfied that his investment would be realised on a basis calculated wholly or mainly by reference to the value of property in respect of which the scheme makes arrangements
An OEIC is also known as an investment company with variable capital (ICVC) (these terms mean the same thing and are used interchangeably)