Unregulated collective investment schemes—essentials

Copyright © 2025 LexisNexis
Produced in partnership with Lora Froud of Macfarlanes
Practice notes

Unregulated collective investment schemes—essentials

Copyright © 2025 LexisNexis

Produced in partnership with Lora Froud of Macfarlanes

Practice notes
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What are unregulated Collective investment schemes?

In the UK, an unregulated collective investment scheme (UCIS) is any collective investment scheme (CIS) that is not regulated by the Financial Conduct Authority (FCA) as either an authorised (regulated) fund or a recognised scheme. For further information on authorised or recognised funds, see Practice Note: Collective investment schemes—essentials.

Firms and individuals can check the FCA register  to find out whether a collective investment scheme is authorised or recognised.

In his judgment in the Supreme Court case, Asset Land Investment Plc v The Financial Conduct Authority, Lord Sumption subjected the definition of ‘collective investment scheme’ in FSMA 2000, s 235 to thorough analysis (see para 65 onwards).

The fact that a CIS is unregulated does not mean that no rules apply.

For further information on what constitutes a CIS, see Practice Note: Collective investment schemes—essentials.

Overlap between a UCIS and an AIF

A UCIS will also in the vast majority of cases be an alternative investment fund (AIF) for the purposes of the Alternative Investment Fund Managers Directive (Directive 2011/61/EU)

Lora Froud
Lora Froud

Macfarlanes

Lora advises clients on the structuring and operation of onshore and offshore investment funds, both regulated and unregulated, and also advises on all legal aspects of asset management. She specialises in regulated funds. Her clients include operators, asset managers, depositaries and custodians of investment funds. She regularly assists clients with related EU and UK regulatory and compliance matters. She has particular experience in advising on the UCITS regime, the Retail Distribution Review, the Alternative Investment Fund Managers Directive, MiFID and PRIIPs. 
 
Lora is an active participant in Investment Association initiatives and is currently advising the FCA and IA on the proposed Long Term Asset Fund. She is also on the Alternative Investment Management Association working groups in relation to UCITS, AIFMD and Liquid Alternatives and is on the IBA’s Investment Funds Committee.
 
Lora is ranked as a leading individual in the retail funds space by a leading legal directory, The UK Legal 500, and is listed in The Lawyer’s Hot 100 2020.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Collective investment scheme definition
What does Collective investment scheme mean?

An arrangement whereby a number of investors pool their assets and have them professionally managed.

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