IFM02110 - Authorised investment funds (AIFs): general
AIFs are collective investment schemes authorised and regulated by the Financial Conduct Authority (FCA) under the terms of the Financial Services and Markets Act 2000 (FSMA00).
Categories
All AIFs fall into one of the following categories.
UK UCITS funds
UK UCITS funds are AIFs that previously fell under the EEA UCITS regime, or have been established under the new UK UCITS regime. In accordance with the FCA ‘COLL’ handbook the instrument constituting the scheme must state that the scheme is a UCITS scheme. These schemes can be marketed to retail investors within the UK.
Non-UCITS retail funds
Non - UCITS retail funds (often referred to as NURS funds) are any AIFs which, whilst not being UCITS schemes are not Qualified Investor Schemes (see below). There are fewer restrictions on their investment powers than on UK UCITS schemes. They can be marketed to retail investors.
Qualified Investor Schemes (QIS)
QIS funds are AIFs with wider investment and borrowing powers than either UK UCITS funds or NURS funds which can be marketed only to ‘qualified’ investors as defined by the FCA within the COLL handbook. More details can be found at IFM02300 onwards.
Long-Term Asset Funds (LTAF)
LTAF funds are AIFs aimed at investment in long-term illiquid assets. LTAF can only be marketed to professional investors. More details can be found at IFM02300 onwards.
Legal forms
AIFs can take one of two different legal forms:
Note that both the FCA handbook and the tax rules use ‘units’ (in an AIF) to refer to either units in an AUT or shares in an OEIC as the case may be.