Investment Funds

This note provides an overview of the new and ongoing initiatives and measures outlined by the government in the Budget of 21 March 2012 (2012 Budget) that will impact specifically on the UK financial services industry. It also includes reference to the relevant legislation that has been enacted through the Finance Act 2012 to give effect to these measures, as well as related initiatives announced in the 2012 Autumn Statement. For links to tailored PLC practice area updates on the 2012 Budget and comments from leading tax practitioners on what they consider to be the key points of interest for business, see PLC 2012 Budget.  

This note explains what Jersey property unit trusts (JPUTs) are, how they are established and why they are used for holding UK property. It considers the current advantages of using JPUTs and contains a table comparing and contrasting JPUTs with UK real estate investment trusts (REITs). This note also examines which categories different types of investors must fall into.

A practice note explaining where to find EU law content from a topic page.

A note setting out the preliminary practical considerations and procedures to be followed when changing the authorised corporate director (ACD) of an open-ended investment company (OEIC).

A note setting out the preliminary practical considerations and procedure to be followed when changing the manager of an authorised unit trust (AUT).

A practice note charting developments relating to the Regulation establishing the Connecting Europe Facility in chronological order.

This tracker sets out links to the key responses to the FSA's August 2012 consultation paper on restrictions on the retail distribution of unregulated collective investment schemes (UCIS) and close substitutes (CP12/19).

This tracker contains links to the key responses to the MiFID II legislative proposals and related consultation papers, including those pre-dating publication of the proposals. It includes links to responses from trade and consumer bodies as well as other interested stakeholders, including the FSA and UK government.

This practice note explains the reasons for establishing an Enterprise Investment Scheme (EIS) fund. It then examines the structure of a typical EIS fund. NOTE: This resource is being reviewed in light of the 2013 Budget. For more information, see Legal update, 2013 Budget: key business tax announcements.

An outlines the FCA's framework for confirming industry guidance, including: The status and significance of FCA confirmed industry guidance in the supervisory and enforcement context.  The process followed by the FCA to confirm industry guidance, and the confirmation criteria. Guidance that has been confirmed.

A practice note charting developments relating to the Financial Transaction Tax Directive in chronological order.

This note outlines the work of the FSA, from 2008-2011, to strengthen its client assets requirements in response to the issues highlighted by the financial crisis and the collapse of Lehman Brothers International (Europe) (LBIE). The key primary source material table in this document contains links to key primary source material and related PLC Financial Services legal updates. It is not intended to be an exhaustive list of all relevant materials.

In this practice note, Margaret Chamberlain, Jane Tuckley and Tim Lewis, partners in Travers Smith's Financial Services and Markets department, analyse and comment on the key aspects and potential impact of the Swedish Presidency of the Council of the European Union draft compromise proposal for the proposed Alternative Investment Fund Managers Directive (AIFM Directive), the original text of which was published by the European Commission in April 2009. The legislative process on the AIFM Directive (as with any instrument of this kind) is deeply political and is now potentially fast-moving. The picture could change often and very quickly in the first half of 2010. It is more than unfortunate that a piece of legislation with such significant implications for the future of Europe as a global fund centre should become such a political football.  In this practice note, the authors outline the legislative process for the adoption of the AIFM Directive, and where we currently are in that process. They then describe the draft Council of the European Union compromise text published by the Swedish Presidency in December 2009, highlighting the key elements which have changed from the original proposal, and certain material differences between the compromise text and the position currently being taken by the European Parliament. For an analysis and commentary on the texts agreed by the Council of the EU and the European Parliament, see Practice note, Fundamental change

An outline of the issues to consider when setting up a Sharia-compliant alternative investment fund, such as a private equity fund, a real estate fund or, possibly, a hedge fund. It addresses the marketing and structuring of a Sharia-compliant fund and related regulatory issues. The note also explains Sharia principles governing funds, as well as Islamic finance techniques and types of Sharia-compliant funds.  The following multi-jurisdictional guide is also available to PLC Financial Services' subscribers: Investment Funds Handbook. This guide brings together a range of information on current cross-border issues and includes country-specific Q&A guides. Each jurisdiction is described in a separate chapter, written by one of the leading firms on the subject in that jurisdiction. This note is in the process of being reviewed by the author.

Insurance premium tax (IPT) is a tax (authorised under European Community law) on the premium paid under taxable insurance contracts. It was introduced by the Finance Act 1994. This note gives a general overview of IPT as it applies to practical issues commonly encountered by the practitioner.

This practice note examines the various tax issues that arise in respect of investment trusts, including the conditions that must be satisfied to attain investment trust status and the consequences of doing so.

An outline of the work of the FCA (and its predecessor the FSA), the UK government and other bodies on developing the UK as an Islamic finance centre. This note also provides a brief overview of Islamic finance and relates to both the retail and wholesale sectors.

A practice note listing key forthcoming dates in 2012 for corporate tax practitioners.

A note on land banking.

This practice note outlines the European Commission's legislative proposals to amend the Markets in Financial Instruments Directive (2004/39/EC), which were published on 20 October 2011 (MiFID II). For a summary of, and links to, PLC Financial Services MiFID materials, see Practice note, A guide to PLC Financial Services MiFID materials.

This document brings together key pre-implementation developments relating to the Markets in Financial Instruments Directive (2004/39/EC) (MiFID), that is, MiFID related developments prior to 1 November 2007. It also provides links to relevant primary sources and PLC Financial Services content. For key source material on MiFID-related developments since 1 November 2007, see Practice note, MiFID Resources: post-implementation developments. For developments relating specifically to the European Commission's review of MiFID and the subsequent legislative proposals to amend MiFID, see Practice note, Hot topics: European Commission's MiFID review. 

This practice note is one of two notes summarising the European Commission's consultation proposals to amend the requirements of the Markets in Financial Instruments Directive (2004/39/EC) and its implementing legislation, which were published in October 2010 following the Commission's review of the effectiveness of the Directive. This note focuses specifically on the proposals that will impact on market structure and the way those markets, and those operating within them, function. It includes proposals to enhance requirements relating to the disclosure of trade transparency data, transaction reporting, the trading of derivatives on organised venues, oversight of derivatives trading and commodity derivative markets. This note does not comment on the Commission's legislative proposals to amend MiFID, which were published in October 2011. For details of the legislative proposals, see Practice note, Hot topics: MiFID II.

This practice note examines the various tax issues that arise in respect of offshore companies and offshore unauthorised unit trusts. It also provides a summary of the main UK anti-avoidance provisions that need to be considered in relation to the tax treatment of UK investors investing in offshore funds.

An overview of the procedures to be followed by firms wishing to establish branches or provide cross-border services in the European Economic Area (EEA) using passport rights under one of the single market directives. It focuses on the procedures that apply to firms wishing to passport into or out of the UK.

This practice note outlines the FSA's supervisory work and European and international initiatives relating to the regulation of private equity and venture capital. The following multi-jurisdictional guides are also available to PLC Financial Services' subscribers: Private Equity Handbook and Venture Capital Handbook. They bring together a range of information on current cross-border issues and includes country-specific Q&A guides. Each jurisdiction is described in a separate chapter, written by one of the leading firms on the subject in that jurisdiction.

A note setting out the procedures for the establishment and authorisation of an open-ended investment company (OEIC) in the UK.

An overview of the FSA's retail distribution review (RDR), including an introduction to the rules and an explanation of how the changes brought about by the RDR impacted on other advice sectors (such as, the insurance and mortgage sectors,  as well as simplified and basic advice).

A note providing an overview of the restrictions on the promotion of collective investment schemes (CISs). It outlines: Who can promote regulated and unregulated CISs. Who CISs can be promoted to. Whether the COBS 4 financial promotion rules apply to the promotion Whether any exemptions from those rules are available.

A document containing items formerly found in PLC Tax legislation trackers but that are now in force.

This note is part of a guide to the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFM Directive), written by Travers Smith LLP. The note sets out how the AIFM Directive's acquisition of substantial stake rules operate. For an index to the AIFM Directive guide, see Practice note, A guide to the AIFM Directive: index.

This note is part of a guide to the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFM Directive), written by Travers Smith LLP. The note sets out what reports and disclosures alternative investment fund managers need to make to investors and regulators. It also explains when such reports and disclosures need to be made. For an index to the AIFM Directive guide, see Practice note, A guide to the AIFM Directive: index.

This note is part of a guide to the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFM Directive), written by Travers Smith LLP. The note sets out the remuneration requirements contained in the AIFM Directive. It also explains what remuneration is and which staff are within scope of the rules. For an index to the AIFM Directive guide, see Practice note, A guide to the AIFM Directive: index.

This note sets out the rights, powers and obligations of the European Securities and Markets Authority and the European Commission to adopt level 2 measures and other guidance, under the Lamfalussy process, to supplement the text of the Directive on Alternative Investment Fund Managers.

This note is part of a guide to the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFM Directive), written by Travers Smith LLP. The note sets out what a depositary does, who can be a depositary and what rules apply to depositaries under the AIFM Directive. For an index to the AIFM Directive guide, see Practice note, A guide to the AIFM Directive: index.

This practice note provides an overview of the UCITS IV Directive (2009/65/EC) which recast and replaced the UCITS Directive (85/611/EEC). It contains details about the UCITS regime and discusses key provisions contained in the UCITS IV Directive, including authorisation, management companies, depositaries, mergers, investment policies, master-feeder structures and key investor information (KII).

This practice note sets out answers to some of the key questions on the UK REITs regime.

This practice note examines the various tax issues that arise in respect of UK authorised and unauthorised unit trusts and UK open-ended investment companies. It considers the tax treatment of such funds and of their investors.

This practice note sets out the procedure for winding up an authorised unit trust (AUT) and terminating an AUT sub-fund. It contains a timeline of key steps in the winding up process.