Common Investment Fund consultation (CLA)

IBB’s Jo Coleman recently chaired the Charity Law Association’s working party on the Charity Commission’s consultation on its policy changes affecting Common Investment Funds (“CIFs”). As a result of a European Directive that will apply to managers of CIFs, the Commission is stepping back from overseeing the management and operation of CIFs, which will now be overseen by the Financial Conduct Authority.

The Directive will allow greater flexibility in the management of CIFs and the Commission will now confine itself to matters of charity law. Further, the Commission has indicated that it is highly unlikely to register any new CIFs leading to fears that existing CIFs will become super-funds. The working party also highlighted the fact that CIFs are perceived as being “Charity Commission approved”, which they are not, and has suggested steps are taken to ensure that investing charities understand the new CIF regime.

IBB’s specialist charity lawyers have a wealth of experience in delivering practical commercial advice to charities and not for profit organisations and those who work with them. Contact our charity law team by calling 01895 207809 or email charities@ibblaw.co.uk.