Unregulated collective investment schemes (UCIS)

UCIS are described as ‘unregulated’ because they are not subject to the same restrictions as regulated collective investment schemes, in terms of their investment powers and how they are run. Although the schemes themselves are not authorised or recognised, persons carrying on regulated
activities in the UK in relation to UCIS (including providing personal recommendations, arranging deals and establishing, operating and managing schemes) will be subject to FSA regulation, including Handbook requirements, such as the Conduct of Business Sourcebook (COBS).

What actually is a UCIS is a complex question. Generally, a UCIS exists whenever there is a pooling of investments to acquire, hold, manage or dispose of property and investments, for profit, and the participants in the ‘pooling’ arrangement do not have day-to-day control over the management of the underlying property. A wide range of arrangements can be caught regardless of the underlying property and investments.