UCIS - REGULATED & UNREGULATED COLLECTIVE INVESTMENTS

There has been increased FSA focus on Unregulated Collective Investment Schemes (UCIS) ever since the 2009 / 2010 review highlighted systemic failures in applying exemptions and understanding the rules surrounding the promotion of UCIS.

The FSA has found evidence that some complicated investment opportunities are being unlawfully promoted and sold to members of the general public.

There are many types of Collective Investment Scheme (CIS) which are regulated, however if a CIS is not authorised it is considered to be an Unregulated Collective Investment Scheme (UCIS). UCIS are not subject to the same restrictions in terms of their investment powers and they way they are run.

UCIS cannot be promoted to the general public in the UK, but can be sold to certain investors including:

• Certified high net worth investors

• Sophisticated investors

• Self-certified sophisticated investors

• Existing investors in UCIS

However, it has been found that this is not always the case and SIPP providers are now also finding the regulatory spotlight turning their way as concern is mounting at the FSA over SIPP providers’ sale of Unregulated Collective Investment Schemes (UCIS). 
 

Whilst UCIS are not regulated, if you are carrying out regulated activities in the UK in relation to UCIS, which can include:

• Proving personal recommendations

• Arranging deals

• Establishing, operating or managing schemes

 
then you will still be subject to regulation.

TCC is well placed to help you promote UCIS in a way that is compliant with the restrictions imposed by section 238 of FSMA.

If you would like to discuss UCIS please contact us on 020 3008 6020 or email info@theconsultingconsortium.com.