General Information and legislation relevant to all schemes

1.1 The CIS Act

The CIS Act sets out the statutory framework in the Isle of Man for the promotion and regulation of collective investment schemes.

• The definition of Collective Investment Scheme is set out at section 1 of the Collective Investment Schemes Act 2008 ("the CIS Act").
• Arrangements that are not to be treated as schemes are set out in the Collective Investment Schemes (Definitions) Order 2008.
• The CIS Act was enlivened in 2008 by the Collective Investment Schemes (Appointed Day) Order 2008.
• Fees directly applicable to Collective Investment Schemes are set out in the Collective Investment Schemes (Fees) Order 2011
• There is provision to appeal from decisions of the Financial Supervision Commission by virtue of the Financial Services Review Regulations 2001.

1.2 Promotion of Schemes

Section 3 of the CIS Act prohibits advertising, or advising or procuring investment in a collective investment scheme unless it is an authorised scheme or a recognised scheme. For further information on the promotion of schemes in the Isle of Man please refer to:

• Financial Supervision (Promotion of schemes other than Authorised and Recognised Schemes) (Exemption) Regulations 2010
• Guidance Note – Promotion of Authorised Schemes
• Guidance Note - Valuation and Fee Charging

1.3 Other matters

• Limited Partnerships and Funds Guidance
• Outsourcing of functions to an IOM licenceholder by a UK UCITs scheme
• “Managed Accounts” – Outline & Regulatory Backdrop
• Indirect Tax Concession (VAT)
• Inward Outsourcing –
  • Undertaking outsourced functions on behalf of administrators or managers of foreign collective investment schemes - "Inward Outsourcing". The Commission permits a certain level of "inward outsourcing" of fund administration activities to Isle of Man licensed fund managers or fund administrators so that such entities can administer certain activities for non-Isle of Man collective investment schemes, without such schemes becoming an International Scheme.
• Partnership Act -
  • Limited Partnerships (Collective Investment Schemes) Regulations 2010. An international collective investment scheme, structured as an Isle of Man limited partnership may have more than 20 partners.
  • Limited Partnerships (Collective Investment Schemes) (Exemption) Regulations 2010. A limited partnership that is an international scheme is exempted from the requirement to disclose details of the limited partners on the public file held at the Companies Registry.
• Companies acts matters -
  • Collective Investment Schemes (Returns of Allotment and Redemption) (Exemption) Order 2010 - Authorised and International Schemes do not have to file returns of allotments and redemptions of shares with the registrar of companies.
  • Collective Investment Schemes (Prospectus) (Exemption) Regulations 2010. Authorised and International Schemes are exempt from certain provisions of the 1931 Companies Act with regard to prospectus requirements. This is because similar provisions already apply to these schemes under the framework for schemes.