Isle of Man Collective Investment Scheme (“Fund”) Overview

For a list of IOM funds, or to search for a live IOM fund, please click here.

1. Introduction

The Collective Investment Schemes Act 2008 ("CIS Act") sets out the statutory framework in the Isle of Man for the promotion and regulation of collective investment schemes ("funds").

For a diagram of the Isle of Man (“IOM”) fund types to help navigate the relevant legislation, please click here.

For a diagram to help choose a fund type please click here.

Information and documentation applicable to the specific types of fund can be found on the relevant fund type tabs on the right-hand side.

2. Current Fund Types

Authorised Collective Investment Schemes - high level key features

  • Formally authorised - most highly regulated
  • Must appoint an IOM Manager
  • Must appoint a fiduciary custodian/ trustee
  • Must have appropriate arrangements for asset management
  • Benefits from an investor compensation scheme
  • Can be sold directly to the general public in the IOM and subject to recognition elsewhere, for example: UK, Hong Kong, Australia, Jersey and Guernsey etc
  • Can be sold via the other sales routes

Regulated Fund - high level key features

  • Funds aimed at retail investors or markets requiring a Fiduciary Custodian, Trustee or Custodian
  • May be open ended or closed ended
  • Regulated IOM fund subject to Authority pre approvals
  • No restrictions on types of investor
  • Must appoint an IOM Manager
  • Must appoint a Fiduciary Custodian, Trustee, or Custodian
  • Flexibility on investment advisory/asset management requirements
  • Normally sold through independent financial advisers

Qualifying Fund - high level key features

  • Not retail – no minimum initial investment level
  • No regulatory pre-approval
  • Post event notifications to the Authority
  • Must appoint an IOM Manager
  • Must appoint an appointed custodian
  • Flexibility on investment advisory/ asset management requirements
  • Investors must be "qualifying investors"
  • Normally sold through Independent Financial Advisers to qualifying investors
  • Regulated Financial Adviser Distribution
  • Regulated Promoter controlled distribution through acceptable financial advisers

Specialist Fund – high level key features

  • Not retail – minimum initial investment level above US$100,000
  • No regulatory pre-approval
  • Post event notifications to the Authority
  • Must appoint an administrator in IOM or acceptable jurisdiction
  • No formal requirements for a custodian
  • Flexibility on investment advisory/ asset management requirements
  • Investors must be "specialist investors"
  • Normally sold through Independent Financial Advisers to specialist investors or direct to institutional investors

Exempt Scheme

  • Private arrangements
  • Not directly subject to regulation
  • Must have fewer than 50 investors
  • No invitation to become a participant can be made to the public or any section of it in any part of the world

Recognised Scheme

  • Schemes established outside the IOM
  • Equivalent to an IOM Authorised Collective Investment Scheme

Overseas Schemes

  • Schemes established outside the IOM that are not Recognised Schemes or private arrangements equivalent to the Exempt Scheme (known as "Exempt Type Schemes").

3. Superseded Fund Types

Full International Scheme

  • The Full International Scheme has been superseded by the Regulated Fund.
  • No new Full International Schemes can be established however existing funds may continue.

Experienced Investor Fund (“EIF”) – Qualifying Type

  • The Qualifying Type EIF has been superseded by the Qualifying Fund.
  • No new EIFs can be established however existing funds may continue.

Experienced Investor Fund – Legacy and Closed Type

4. Fund functionaries

Licenceholders that provide services to funds are regulated under the Financial Services Act 2008. Such services constitute Class 3 activities under the Regulated Activities Order 2011. More information is contained in the Class 3 licenceholders section of this website.

5. Promotion to the general public

Isle of Man Authorised Collective Investment Schemes ("Authorised CIS") can be promoted directly to the general public in the IOM. Subject to receiving the required approval, Authorised CIS may also be promoted and sold in the Guernsey, Ireland, Jersey , UK and certain other territories. See the guidance note on Promotion of Authorised Collective Investment Schemes for information on promotion outside of the Isle of Man.

Retail schemes established outside the Isle of Man that wish to be promoted to the general public in the Island must obtain ‘recognition’ by the Authority. These are referred to as Recognised Schemes.

Promotion of Isle of Man Schemes other than Authorised CIS and Recognised Schemes

Full International Schemes, Regulated Funds, Specialist Funds, Qualifying Funds, Experienced Investor Funds, Professional Investor Funds and Exempt Schemes cannot be promoted to the general public.

Controls over their promotion, otherwise than to the general public in the Island, is subject to the conditions set out in the Financial Supervision (Promotion of schemes other than Authorised and Recognised Schemes) (Exemption) Regulations 2010.

Additional conditions relating to the promotion of the different fund types is set out in the individual fund Regulations. See this legislation page.