INTM269076 - Non-residents trading in the UK: through UK investment managers, brokers or Lloyd鈥檚 agents: investment managers: "investment transaction": transactions in units in collective investment schemes
What is a collective investment scheme?
Regulation 5 of the Investment Manager (Investment Transactions) Regulations 2014 of admits transactions in units in a collective investment scheme.
皇冠体育app definition of 鈥榗ollective investment scheme鈥� is at S.235 of the Financial Services and Markets Act 2000 (FSMA). 皇冠体育app definition is widely drawn and encompasses any arrangements under which participants share in, or receive profits or income arising from the acquisition, holding, management or disposal of any property (whether the participants become the owners of the property or otherwise). 皇冠体育app arrangements must also be such that:
皇冠体育app participants do not have day-to-day control over the management of the property; and the arrangements must have either or both of the following characteristics
皇冠体育app contributions of the participants and the profits or income out of which payments are made are pooled; or
皇冠体育app property is managed as a whole by or on behalf of the scheme operator.
This definition can encompass arrangements such as unit trust schemes, contractual arrangements such as Common Contractual Funds (CCFs) and Fonds Commun de Placement (FCPs), and partnerships, whether incorporated or unincorporated.
皇冠体育app term 鈥榰nits鈥� is also given a wide definition and means the rights or interests of the participants in a collective investment scheme, however those rights or interests are described. Rights under a contractual arrangement such as an FCP, for example, are within the meaning of 鈥榰nits鈥� in regulation 5, as are membership interests in a partnership, as well as interests actually represented by the issue of units (as in the case of a unit trust).
For the purposes of regulation 5, no account is taken of the transparency or opacity of the vehicle by virtue of which the arrangements subsist. Provided the transaction is in rights or interests in a collective investment scheme meeting the requirements of regulation 5, it is an 鈥榠nvestment transaction鈥� for the purposes of the Investment Manager Exemption (IME).