The forthcoming FSA Consultation Paper on the collective investments scheme aims to make unit trusts...
The forthcoming FSA Consultation Paper on the collective investments scheme aims to make unit trusts as flexible as Oeics and broaden the range of vehicles available to investors.
The regulator's proposals, due out later this week, seek to even out Oeic and unit trust legislation. Retail funds will be split into Ucits and non-Ucits vehicles, while funds for institutional and professional investors, dubbed non-retail, will be authorised for the first time.
The alignment of Oeic and unit trust legislation follows on from N2 last November, when greater flexibility was added to Oeics such as the ability to launch limited issue funds. This flexibility is now to be extended to unit trusts.
Limited redemption funds will also be allowed for the retail market as non-Ucits vehicles and will offer staggered redemption over a period of up to six months. The aim is to make it easier for potentially illiquid portfolios, such as property, to operate.
The restriction on performance fees will also be relaxed, enabling authorised funds to charge performance-related fees after all other charges if a pre-determined performance watermark is surpassed.
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