Every fund structured as a UCIS must have a firm authorised by the Financial Services Authority (like PILinvests) to act as its 'operator'. This is because establishing, operating or winding up a collective investment scheme is a regulated activity and carrying out the activity without the proper permissions is a criminal offence.

Other regulated activities which are likely to be undertaken include:

  • Managing investments
  • Dealing in investments as Agent
  • Advising on investments
  • Arranging deals in investments, and
  • Arranging safeguarding and administration of assets.

PILinvests is authorised to carry out all of these activities and the FSA lays down, in some detail, the framework within which we must carry out our business in order to comply with the Financial Services and Markets Act (FSMA) as well as subsequent UK and European modifications to it such as the EU’s Markets in Financial Instruments Directive (MiFID) and the Prospectus Directive. Other obligations are placed on firms operating in this area by the wider law, particularly by the Companies Act, the Data Protection Act and the various pieces of financial crime legislation.

“Unregulated" collective investment scheme is something of a misnomer. Far from being unregulated, these schemes are very tightly restricted by the various laws. One sweeping piece of regulation reads:

  • "Such schemes cannot be marketed to the general public and are otherwise restricted in their promotion."

As a result, the promotion of unregulated collective investment schemes must be carried out very carefully and only to selected groups of investors. Often the only route considered is through IFAs but in fact any authorised firm, and even unauthorised firms, can promote a UCIS as long as the approach is planned carefully and carried out correctly. 

PILinvests helps its clients to plan routes to market which can actually be implemented, we do not just point out the regulatory obstacles but help you navigate your way through them. In launching a fund, more than in any other area of financial services, it is absolutely vital that compliance and regulatory understanding are used strategically.

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