Fund Services
Fund Services - authorised operator and manager of collective investment schemes
BACKGROUND
Section 235(1) FSMA defines a CIS as "any arrangements with respect to property of any description, including money, the purpose or effect of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income".
Under FSMA, there is a general prohibition on establishing, operating or winding up a CIS without being authorised by the FSA.
If you are considering establishing a Collective Investment Scheme ("CIS" as defined within the Financial Services and Markets Act 2000 "FSMA") then an authorised operator and manager will be required to undertake certain functions. These can be provided by Consortium Investment Management LLP, which is suitably authorised and regulated by the FSA to establish, operate and wind up collective investment schemes and handle client money.
The underlying investment vehicles that Consortium specialises in establishing are Exempt Property Unit Trusts ("EPUT") and Limited Partnerships ("LPs").
CISs are used by Consortium to bring investors together to undertake specific investments, including:
- Purchasing or developing real estate, in the UK or overseas
- Making commercial loans to third parties
- Providing feeder funds into other investment structures
- Onshore structured finance transactions
Consortium can provide a full range of services including:
- "Off the shelf" EPUT and LPs
- Provision of general partner and nominee companies
- Preparing and issuing financial promotions
- Establishing and operating the CIS's bank accounts
- Managing the acceptance of investor's subscriptions
- Ensuring compliance with money laundering regulations
- Providing accounting services
- Tax administration (including VAT reporting and self assessment returns)
- Managing the borrowing arrangements
- Preparing and distributing the annual financial statements
- Sourcing property investment opportunities, including developments
In respect of property funds, these can best be described as three levels of service:
LEVEL ONE
Where you have already identified the need for an authorised operator to be involved with the management of your proposed fund, Consortium can provide a tailored service.
Services Provided
These include:
- Providing advice on establishing a scheme, reviewing constitutional documents and any financial promotion literature.
- Establishing and operating the funds bank accounts (Consortium is authorised by the FSA to hold client money).
- Ensure that money laundering regulations are complied with
- Maintain registers of investors, distribute annual statements, and approve admission of new investors and any distributions.
LEVEL TWO
Where you have identified the requirement to establish a collective investment scheme, and identified the entities to provide the investment objective and property advice, in addition to the Level One services, Consortium can provide:
- The underlying investment vehicles (EPUT / LP)
- The necessary SPV General Partner and nominee companies, as required
- Fully prepare and issue the Fund's prospectus and fact sheet (if required);
- Undertake the investment decisions of the Fund, based upon advice of your appointed property adviser (who is not necessarily authorised).
- Prepare full accounting records for the Fund including tax computations and tax vouchers (if applicable)
LEVEL THREE
Should you wish to have a dedicated one stop solution, Consortium can provide both the property adviser role as well as source and asset manage investment properties or developments on behalf of the Fund.
Consortium has a track record of sourcing off-market investment opportunities including commercial and residential developments.
For further information, please call 020 7437 0200 to discuss your requirements or contact us at: info@consortium-im.com
