Full International Scheme
The Collective Investment Schemes Act 2008 came into operation on 1st August 2008. However, it should be noted that subordinate legislation made under the Financial Supervision Act 1988 continues to have effect as if it was made under the relevant provisions of the Collective Investment Schemes Act 2008.
In relation to the existing subordinate legislation and guidance the term "trustee" should be read as "trustee" if the scheme is a unit trust and "fiduciary custodian" for other types of scheme structure.
The Full International Scheme has been superseded by the Regulated Fund. The Collective Investment Schemes (Legacy) Regulations 2010 means that no new International Schemes can be established however existing funds may continue. The Regulations also expand the jurisdictions in which a trustee or fiduciary custodian of an international scheme can be located by including Ireland and Luxembourg.
For forms applicable to Full International Schemes, please click here.
The Manager of a Full International Scheme must give written notice to the Authority of any proposal to replace the scheme’s Trustee/Fiduciary Custodian/Governing Body or any person comprising its Governing Body, in accordance with the provisions of Paragraph 3(1) of Schedule 2 to the Collective Investment Schemes Act 2008 (“the Act”).
The Trustee or Fiduciary Custodian of a Full International Scheme must give written notice to the Authority of any proposal to replace the scheme’s Manager in accordance with the provisions of Paragraph 3(2) of Schedule 2 to the Act. Effect shall not be given to any other proposed alteration to a Full International Scheme unless the scheme’s Manager has given the Commission written notice of the proposal and the Authority has given its approval for the Manager to continue to act in relation to the altered scheme.
Written notice constitutes the submission of a Full International Scheme Alteration form via the online portal (https://www.fscreturns.co.im) by the scheme manager. Any notice made by the Trustee or Fiduciary Custodian should be in writing and not through the online portal. The written notice should be accompanied by relevant attachments including black lined versions of any revised draft fund constitutional documents, offering documents or material agreements. If an alteration requires shareholders’ approval, a draft copy of the proposed resolution should be provided to allow for any comment by the Authority.
In accordance with section 4 of the Financial Supervision (International Collective Investment Schemes) (Advertising and Scheme Particulars) Regulations 1995, the scheme particulars document of a Full International Scheme must be revised immediately a significant change occurs. A revision of a scheme particulars document may take the form of a complete substitution or a supplement.
No alteration may take effect unless either the Authority has approved the proposal, or one month has elapsed since the date that notice was given and the Authority has not notified the manager, trustee or fiduciary custodian that the proposed alteration is not approved.
Following receipt of the Authority’s approval to the alterations the Manager should arrange to provide:
- A copy of the new Scheme Particulars; and,
- An operator’s certificate from the Manager in accordance with Section 4 (7) of the Financial Supervision (International Collective Investment Schemes) (Advertising and Scheme Particulars) Regulations 1995.
The Authority’s prior approval is not required to wind-up a Full International Scheme. Nevertheless, the Authority expects that it will be notified via the online portal (https://www.fscreturns.co.im) of any proposals to wind up or close a Full International Scheme.
Shareholders should be notified and the draft communication should be shared with the Authority for review and comment. The Authority would expect audited accounts to be prepared for the fund for the final accounting period to the date of cessation.
Following cessation, the Authority will update the fund manager’s financial services licence conditions to remove reference to the ceased Full International Scheme.