What is the legal structure of an OEIC
A company but not the Companies Act so not listed - allows them to expand/contract
What are 3 features of OEICS
Pooled then invested collectively - valued on NAV
Retail, non retail UK UCITS and QIS
Investors interests represented by shares in company
What is the regulatory structure (5)
Authorised by the FCA
Operated by Authorised Corporate Director
Assets held by independent depositary
Both must be authorised/regulated by FCA
Regulated by COBS
Give 5 differences between unit trust and oeic
co with legal structure v trust with deed
single priced (reflects nav) vs dual priced
shares not units
acd/depositary vs fund manager and trustee
initial charges included in price vs added to offer price
what are umbrella funds (oeics)
sub funds that can have different classes and objectives.
Must all use same pricing basis
can switch between without selling and triggering tax
What are the borrowing rules for an OEIC?
Temporary and no more than 10%
What are the 5 requirements of an acd to do
compliance with investor protection requirements
regulations
* maintaining a register of shareholders;
* day-to-day management issues, such as valuation, pricing and dealing;
* preparation of accounts; and
* management of investments
4 responsibilities of depositary
- valuation, pricing and dealing in OEIC shares;
- collection of income and authorising the payment of income distributions;
- ensuring the ACD correctly exercises the investment and borrowing powers; and
- safekeeping of assets.
4 OEIC reporting requirements
- report to holders twice a year – once at the interim stage (unaudited) and once at the
annual stage (audited); - produce reports that comply with the OEIC’s Statement of Recommended Practice;
- issue short-form accounts; and
- make available full accounts, if requested.
What is single pricing
uses mid market of underlying asset
What is a dilution levy
covers dealing costs and cost of spread of underlying assets
Can be applied if large outflows/in flows
Fund also has option of swing pricing instead
3 advantages of oeics
can be marketed across europe unlike trusts
Umbrella easier to switch
Umbrella easier to create new
what is the CT regime for OEICS
CT on income but not gains
