We specialise in establishing, operating and managing Collective Investment Schemes
Legislation
Section 235(1) Financial Services & Markets Act 2000 ("FSMA") defines a Collective Investment Scheme ('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 CIS an authorised operator and manager is required to undertake certain functions. These functions can be undertaken by Consortium as it is authorised and regulated by the FSA to establish, operate and wind up collective investment schemes, issue offer documents and handle client money.
The underlying investment vehicles that Consortium specialises in establishing are Exempt Property Unit Trusts ('EPUTs') 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 secured loans to third parties
- Providing feeder funds into other investment structures
- Onshore equity structuring for structured finance transactions
We can provide a full range of services including:
- 'Off the shelf' EPUTs and LPs
- Provision of general partner and nominee companies
- Preparing and issuing offer documents
- 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, Consortium's services are provided in three levels:
LEVEL ONE
Where you have already identified the need for an authorised operator to be involved with the management of your proposed fund, we can provide a tailored service which includes:
- advice on establishing a scheme, reviewing constitutional documents and any financial promotion literature;
- establishing and operating the fund's bank accounts (Consortium is authorised by the FSA to hold client money);
- ensuring that money laundering regulations are complied with; and
- maintain registers of investors, distribute annual statements, make distributions and approve admission of new investors.
LEVEL TWO
Where you have identified the requirement to establish a CIS, and identified the entities to provide the investment objective and property advice, in addition to the Level One services, we can:
- provide the underlying investment vehicles (EPUT / LP);
- provide the necessary special purpose vehicle's general partner and nominee companies;
- fully prepare and issue the fund's offer document and fact sheet;
- undertake the investment decisions of the fund, based upon the advice of your appointed property adviser (who is not necessarily FSA authorised); and
- prepare full accounting records for the fund including tax computations and tax vouchers (if applicable).
LEVEL THREE
Should you require a dedicated comprehensive solution, Consortium can fulfill the role of property adviser as well as source and asset-manage investment properties on behalf of the fund.
For further information or to discuss your requirements, please call 020 7437 0200 or contact us at: info@consortium-im.com