Praxis Operator Services (UK) Limited is authorised by the Financial Conduct Authority to act as Operator of unauthorised collective investment schemes and undertake related regulated activities. Operator services are focused on professional clients and eligible counterparties. Praxis does not provide tax, legal, investment or regulatory advice.
Frequently asked questions: UK Collective Investment Schemes and Operator services
Frequently asked questions
What is a collective investment scheme (CIS)?
A collective investment scheme (CIS) is an arrangement where participants contribute to and share in profits or income generated by investments. Whether a particular arrangement constitutes a CIS depends on its specific characteristics and legal structure. Collective investment schemes can be either authorised or unauthorised. An unauthorised collective investment scheme (UCIS) is a CIS that has not been authorised by the Financial Conduct Authority (FCA). UCIS structures are commonly used for private capital, real estate, joint venture, and other alternative investment arrangements involving professional investors.
When might an FCA-authorised Operator be required?
Certain arrangements where investors pool capital or participate in profits or income from investments may constitute a collective investment scheme under UK regulation. Where a structure constitutes a collective investment scheme, an FCA-authorised Operator may be required to establish, operate or wind up the scheme.
Whether a particular arrangement constitutes a CIS will depend on its circumstances. Appropriate legal and regulatory advice should be obtained before proceeding.
What does an FCA-authorised Operator do?
The Operator is responsible for the operation and oversight of the scheme. This can include maintaining governance materials, books and records, overseeing investor servicing and appointed delegates and reviewing investor communications from an operator perspective.
Praxis supports clients throughout the lifecycle of the scheme, from establishment and launch through ongoing operation to eventual wind-up.
What types of structures can Praxis support?
Our Operator service is particularly suited to private capital, real estate and joint venture arrangements, including structures involving limited partnerships and related SPVs. We work with sponsors and their professional advisers to understand the proposed structure and determine how our operator and wider administration capabilities can support it.
Can Praxis provide administration as well as Operator services?
Yes. Alongside our FCA-authorised Operator capability, Praxis can provide wider fund and corporate administration, accounting, governance, and company secretarial, and directorship services where appropriate. Bringing these services together can create a more coordinated operating model, while maintaining appropriate regulatory oversight and governance of the scheme.
Who can use Praxis Operator services?
We work with UK and international sponsors, asset managers, family offices, investment advisers and developers establishing UK UCIS structures. Our Operator services are focused on structures involving professional clients and eligible counterparties. We do not provide Operator services to FCA-authorised retail investment funds.
How can I determine whether my structure is a collective investment scheme?
Whether a structure constitutes a collective investment scheme depends on the specific facts and circumstances of the arrangement, including how the structure operates, the rights of participants and the governance framework. Sponsors should obtain appropriate legal and regulatory advice before establishing a structure. Praxis can work alongside legal, tax and other professional advisers to assess the proposed operating model from an operator perspective.