Citation, commencement and extent

1.—(1) These Regulations may be cited as the Unauthorised Co-ownership Alternative Investment Funds (Reserved Investor Fund) Regulations 2025.

(2) These Regulations come into force immediately after the Co-ownership Contractual Schemes (Tax) Regulations 2025 come into force.

(3) These Regulations extend to England and Wales, Scotland and Northern Ireland.

Interpretation

2. In these Regulations—

“ the Act ” means the Financial Services and Markets Act 2000 ( 2 );

“ RIF ” has the meaning given by section 20(1) (collective investment schemes: co-ownership schemes) of the Finance (No. 2) Act 2024 ( 3 );

Rights and liabilities of participants

3.—(1) The following provisions of the Act apply in connection with any unauthorised co-ownership AIF(4) that is a RIF, with the modifications specified in paragraph (2)—

(a)section 261M (contracts);

(b)section 261N (effect of becoming or ceasing to be a participant);

(c)section 261O (limited liability);

(d)section 261P(1) and (2) (segregated liability in relation to umbrella co-ownership schemes).

(2) The modifications are—

(a) any reference to a “stand-alone co-ownership scheme” is to be treated as a reference to a RIF that is not an umbrella co-ownership scheme (interpreted in accordance with sub-paragraph (b)).

(b) any reference to an “umbrella co-ownership scheme” is to be treated as a reference to a RIF that satisfies the conditions in section 237(6)(b) and (c) of the Act.

(c)any reference to a sub-scheme of an umbrella co-ownership scheme (interpreted in accordance with sub-paragraph (b)) is to be treated as arrangements constituting the scheme so far as they relate to a separate part of property.

(3) The provisions referred to in paragraph (1)(a) to (d), read with the modifications specified in paragraph (2), apply in connection with any unauthorised co-ownership AIF that—

(a)was previously a RIF,

(b)is currently not a RIF, and

(c)is UK-based (see paragraph (4)).

(4) For the purpose of paragraph (3)(c), an unauthorised co-ownership AIF will be “UK-based” if it meets the conditions set out in regulation 6 (a UK-based scheme) of the Co-ownership Contractual Schemes (Tax) Regulations 2025 ( 5 ).