IFM12260 - Offshore Funds: Definition of an offshore fund: umbrella funds and protected cell companies

‘Umbrella arrangements’ means arrangements which provide for separate pooling of the contributions of investors and the profits or income out of which payments are made to them (s363(1) TIOPA2010). References to part of an umbrella arrangement are to the arrangements relating to a separate pool (or ‘sub-fund’). Umbrella arrangements will not themselves be treated as an offshore fund. Instead -

• each sub-fund and each class of interest is treated as an offshore fund in its own right,
• the umbrella fund is not treated as an offshore fund,
• the overall arrangements are disregarded.

The same approach applies to an individual cell of a protected cell company.