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
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 www.hm-treasury.gov.uk/consult_liveindex.htm
and will run until 31 October 2009.