Treasury is consulting on the regulatory regime for charity pooled funds. These take the form of:
- Common Investment Funds (CIFs), which are open to trustees of different charities. They are similar to unit trusts but not FSA regulated;
- Pooling schemes, where schemes and charities all have the same trustees so trustees can combine funds from a number of the charities they administer;
- Common Deposit Funds (CDFs), which are deposit-taking schemes monitored and regulated by the Charity Commission; or
- Church Exempt Funds, which are established for certain church denominations and which will later this year have to register with the Charity Commission.
Treasury feels CIFs and CDFs should come within FSA’s framework and wants to establish a type of authorised investment fund open only to charity investors, to be called a charity AIF. Treasury asks for comments on its proposals, including on structure of the funds and whether some COLL rules should not apply to them. It also says respondents should consider how the AIFD might affect them and looks at tax issues. It wants comments by 31 October.