Revised guidance on investment funds published

The Charity Commission, the independent regulator of charities in England and Wales, has published revised guidance on Common Investment Funds (CIFs) and Common Deposit Funds (CDFs) ahead of compliance with a new European Directive, which becomes compulsory on 22 July 2014.

CIFs and CDFs are pooled investment funds that only charities can invest in. As registered charities they are regulated under charity law by the Charity Commission and as investment funds, their managers are subject to oversight by the Financial Conduct Authority.

The new guidance follows the recent public consultations on revised model schemes for CIFs and CDFs. The model schemes were revised because of changes to the way  the managers of investment funds will be regulated as a result of the Alternative Investment Fund Managers Directive (AIFMD), due to come into full force on 22 July 2014.

The revised guidance reflects the changes imposed by the AIFMD as well as other updates. Key changes include:

  • One piece of guidance on CIFs and CDFs including easy access to the new model schemes;
  • A reminder that regulation by the Charity Commission does not mean that CIFs or CDFs are endorsed by the regulator. Trustees must make a decision about whether the investments are right for their charity; and
  • A model resolution, which can be used by the funds to make their schemes AIFMD compliant.

To download the full revised guidance visit