CIR 13.7 CIR 13.7 Umbrella Funds
CIR 13.7 Guidance
See CIR Rule 3.1.10 for the definition of an
Form of an Umbrella Fund
CIR 13.7.1 CIR 13.7.1
Subject to any restrictions in the Law and the
Rulesin this module, an Umbrella Fund:(a) may be formed as a Protected Cell Company(PCC); and(b) must be an Open-ended Fund if formed as a PCC.
CIR 13.7.1 Guidance1. A
Protected Cell Company(PCC) is a form of Investment Companywhich needs to be registered as a PCCunder the Companies Regulations. An Umbrella Fundusing the PCCstructure has the benefit of legal segregation of Fund Propertyforming part of each individual cell. Accordingly, Fund Propertyof one cell of a PCCis not available to pay any obligations arising in relation to another cell of that PCC.2. It is not mandatory for an Umbrella Fundto be constituted as a PCC. Instead, such Fundsmay be formed as a conventional Investment Companyor Investment Trust. However, the legal segregation available to each cell of a PCCis not available to Sub-Fundsof Umbrella Fundsnot formed as a PCC.
Investments of an Umbrella Fund
CIR 13.7.2 CIR 13.7.2
Fund Managerof an Umbrella Fundmust ensure that none of its Sub-Fundsinvests in another of its Sub-Funds.
CIR 13.7.2 Guidance
Requirements that apply to other
Fundsapply to Umbrella Fundsequally, although there are some Umbrella Fundspecific requirements. For convenience of reference, key provisions specific to Umbrella Fundsare identified in the following Table.
Additional requirements specific to Umbrella Funds
Rule Requirements CIR Rule 3.1.10 Definition CIR Rule 13.7.1 Form of an Umbrella Fund CIR Rules 9.4.2 Annual and interim reports CIR Rules 9.4.6 Content of the annual report of an Umbrella Fund CIR Rules 9.4.9 Fund Manager's Report CIR Rules 13.7.2 Investment restrictions applicable to Fund of Funds when investing in a Sub-Fund CIR AppA7.1.1(2)(h)&17 Content of a Public Fund Prospectus CIR Rules 14.3.5 Content of a Short Form Prospectus Rules CIR 16.1.1, CIR 16.1.3(3) (4) & (5) Transfer schemes Rules CIR 17.1.1 & CIR 17.1.6 Winding up