Charity Authorised Investment Funds

08 Mar 2017

Giles Neville

Giles Neville

Head of Charities

Cazenove Charities

Following a number of years of work by the Charity Investors Group, led by our colleague Kate Rogers, the new Charity Authorised Investment Fund structure was launched in October 2016 in conjunction with the Charity Law Association, Investment Association, Charity Commission and Financial Conduct Authority. We believe that this is good news for UK charity investors and intend to convert the Cazenove Charity funds into the new structure, subject to gaining the required approval from the regulators.

The structure is available exclusively to Funds established for charitable purposes, which will be registered as charities and regulated as such by the Charity Commission for England and Wales. As authorised funds they will also be regulated by the FCA under the Financial Services and Markets Act, offering protection for the investing Charities.

The Charity Authorised Investment Fund structure replicates the main benefits of the existing Common Investment Fund structure presently administered by the Charity Commission. The new structure preserves many of the specific characteristics of Common Investment Funds; including the tax benefits of being a registered Charity; the ability to smooth income to aid cash flow budgeting for investing Charities and the ability to have an independent advisory committee to represent charity unitholders. Additional benefits include improved regulatory oversight, and an exemption from VAT on investment management fees.

We will be in touch with investors in our charity funds over the coming months to complete the transfer to the new structure.

Author

Giles Neville

Giles Neville

Head of Charities

Cazenove Charities

 

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