02.31 – Collective Investment Schemes

References in this Guidance to Collective Investment Scheme, unless otherwise specified, should be read as defined in the UK Regulations. This broadly has the same meaning as it has for the purpose of the Financial Services and Markets Act 2000, except that it also includes any UK resident company that is:

For the purposes of the Agreement, Investment Entity includes the following types of entities:

  • Collective Investment Schemes within the meaning in the Financial Services and Markets Act 2000.
  • closed ended investment companies
  • fund managers
  • investment managers
  • fund administrators
  • transfer agents
  • depositories, and
  • trustees of Unit Trusts.

However, the only Financial Accounts that are relevant to the Agreement are the Equity and Debt Interests in Collective Investment Schemes.

The UK Regulations state that where the Investment Entity is a Collective Investment Scheme constituted by a person, only the Collective Investment Scheme will have reporting responsibilities in relation to the Financial Accounts (the Equity and Debt Interests) of that Collective Investment Scheme.

For example, a fund administrator or a trustee of a Unit Trust will not be a Reporting Financial Institution by virtue of acting for a Collective Investment Scheme. (However, by exception, a fund manager may be regarded as a Reporting Financial Institution by virtue of Regulation 3(6) where it acts on behalf of a Collective Investment Scheme that is not constituted by a person, for example, a Unit Trust.)

Therefore any Investment Entity other than:

  • a Collective Investment Scheme
  • or a manager or operator of a Collective Investment Scheme that is not constituted as a person,

will not have any reporting responsibilities in relation to the interests in the Collective Investment Scheme.

Nevertheless, an entity may have reporting responsibilities if it maintains Financial Accounts other than those of the Collective Investment Scheme – see the section on fund distributors below.