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2. Implications for trustees |
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2.1 CIFs
2.2 Pool charities
2.3 Hybrid pool charities |
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(See section 3 of OG 49 A1 for definitions of all of these terms.) |
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2.1 CIFs |
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Trustees and managers of CIFs which are not pooling scheme funds are not exempt under the 2001 Order and have to be qualified to act as a manager or trustee of an authorised unit trust scheme. This generally requires them to be authorised by the FSA. |
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(All CIFs are dealt with by the Large Charities Unit in London.) |
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2.2 Pool charities |
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The 2001 Order retains the exemption from any possible need for FSA authorisation for trustees of "pooling scheme funds". A pooling scheme fund is defined as: |
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"a fund established by a common investment scheme the trusts of which provide that property is not to be transferred to the fund except by or on behalf of a charity the charity trustees of which are the trustees appointed to manage the fund." |
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A pool charity which conforms with the definition in section 3.1 of OG 49 A1 is a pooling scheme fund for the purposes of the Order and the trustees of such charities remain exempt from having to obtain authorisation to conduct investment business. The trustees need take no action as a result of the 2001 Order. |
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2.3 Hybrid pool charities |
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Hybrid pool charities do not fall within the 2001 Order definition of a pooling scheme fund even though their characteristics may be similar to those of a pool charity. The trustees of such charities are recommended to seek FSA authorisation to conduct investment business or confirmation in writing from the FSA that authorisation is not needed. |
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The trustees of existing hybrid pool charities may not be aware that both the 2001 Order and the Charities (Account and Reports) Regulations 1995 apply to them. It is important therefore that any member of staff coming across such a Scheme should alert the trustees to the position. Apart from needing to be aware of their obligations, we would recommend that the trustees consider whether to ask us to change the trusts of the Scheme in order to avoid this burden in future years. Amending Schemes may be necessary for the charities involved. |
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CIFs and CDFs Monitoring Section in London are keeping a list of existing and proposed hybrid pool charities. Staff in other operational divisions should therefore notify that section if they come across one. Any queries about hybrid pool charities and the 2001 Order should also be addressed to that Section. |
