IFM12232 - Offshore Funds: Meaning of ‘mutual fund’: condition 'A': s356(3) TIOPA 2010

Condition A requires that the purpose or effect of the arrangements is to enable the participants to ‘participate in the acquisition, holding, management or disposal of the property, or to receive profits or income from those transactions or sums paid out of such profits or income’.

The condition is deliberately drawn widely so that it applies to a broad range of arrangements that facilitate pooled investment. ‘Property’ in this context therefore applies to all asset classes, including securities, equities, and real property and also includes contracts and derivatives.