Consultation on charity collective investments 30/07/09

A public consultation on new proposals to bring charity collective investments more fully under the regulation of the Financial Services Authority (FSA) is launched today.

The proposals, which include creating a new collective investment product exclusively for charities to be regulated by the FSA, were announced in April’s Budget statement and are the result of discussions between the Charity Commission, the Treasury, HM Revenue and Customs, the Office of the Third Sector and the FSA.

Currently, collective investment schemes specifically for charities are usually Common Investment Funds (CIFs) or Common Deposit Funds (CDFs) which are created and regulated by the Commission.

Under the new proposals:

Charities would benefit from the protection of the FSA’s existing authorised fund regime
All charities would benefit from collective investment schemes being authorised and regulated by the FSA; and current duplication of supervision and monitoring by the Charity Commission and the FSA would be ended.

Any new investment format included in the proposals would keep the same tax advantages currently enjoyed by CIFs and CDFs.

Andrew Hind, chief executive of the Charity Commission, said: “The economic world around us has changed considerably in recent times. It’s more important than ever that regulatory reform in practice continues to meet the needs of charities investing to fund their vital work.”

The consultation can be found at and will run until 31 October 2009.

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