Regulated and Unregulated Collective Investment schemes can be a way for investors to potentially lower the risk factor of their investments by pooling with other investors to benefit from economies of scale and to be able to diversify more. They enable investors to take advantage of economies of scale and manage risk better through appointing a professional investment manager which, potentially, also increases the chances of better returns. These schemes enable investors to diversify their investments far more than would be possible as an individual investor and that in turn helps to reduce the risks in theory. So why is diversification such a good thing? It may help to think in terms of the old saying about putting all your eggs in one basket. If you drop the basket you lose all your eggs, but if you have split the eggs between two baskets, when you drop one you still have some eggs left.
Unregulated Collective Investment Schemes (UCIS) will not be able to be sold to the retail public under new guidelines and EIS schemes being introduced by the Financial Conduct Authority (FCA) with the possible exception of Venture Capital investments. The announcement by the regulator was to be made in April, but it has now been put back to sometime in June to give them time to make sure that it is absolutely right. Once the new rules are in force UCIS will only be marketed to high net worth individuals and sophisticated investors.
The difference with UCIS is that they do not have the same restrictions imposed on them as regulated collective investment schemes in respect of the way they are run and their investment powers.
Rockfire Capital Ltd is a London based firm specialising in providing alternative investment management. Rockfire Capital offer services to entrepreneurs, advisers and wealth managers looking to create funds for investing in UK and overseas residential and commercial property, creating onshore feeder funds to feed into other investments, creating collective funds for a diverse selection of investments and having customised ‘white label’ funds specifically for their investor clients.
Rockfire Capital is able to act for clients on a large variety of fund structures and, in particular, Limited Partnerships, Unit Trusts, EIS schemes, OEICs, closed and open ended funds within and outside the UK.
Above all else, Rockfall Capital Ltd aim to deliver a ‘client comes first’ service.
Rockfire Investment Management is headed up by Liam Kavanagh, Rockfire Capital’s Managing Director.