Finance:Common fund
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A common fund is a form of collective investment scheme based upon contractual law rather than being enacted through a trust, corporation or insurance policy.[1]
The model for this type of arrangement is the Fonds commun de placement common in France and Luxembourg.[2]
The common contractual fund in Ireland is another prominent example.[3]
Legal structure
A common fund is typically established under contractual law rather than through a corporate or trust structure. Under this model, the fund itself has **no separate legal personality**; instead, assets are held collectively on behalf of unitholders and managed by an authorised management company on their behalf. As a result, the management company and its custodian have responsibility for the fund’s assets, but the fund itself cannot hold assets or incur liabilities in its own name.[4][5]
Under French law, for example, a *fonds commun de placement* (FCP) functions as a collective investment scheme without legal personality, where investors co-own the fund’s assets proportionally to their units. The management company acts in the name of the fund to manage and invest the assets, while a separate custodian holds the assets on behalf of the unitholders.[6]
See also
- Collective investment scheme
- Fonds commun de placement
- Common contractual fund
References
- ↑ The Granting of Treaty Benefits with Respect to the Income of Collective Investment Vehicles. Organisation for Economic Co-operation and Development. 2010.
- ↑ "Fonds commun de placement (FCP)". https://www.amf-france.org/en/financial-products/savings-products/fonds-communs-de-placement-fcp.
- ↑ "Ireland's Common Contractual Fund | Deloitte Ireland" (in en). https://www.deloitte.com/ie/en/services/tax/analysis/irelands-common-contractual-fund.html.
- ↑ "Fonds commun de placement (FCP) definition". https://www.boad.org/en/our-publications/glossary/fonds-commun-de-placement-fcp/.
- ↑ "Alternative investment fund structures in France". https://iclg.com/practice-areas/alternative-investment-funds-laws-and-regulations/france.
- ↑ "What you need to know about collective investments (including FCPs and SICAVs)". https://www.amf-france.org/fr/espace-epargnants/comprendre-les-produits-financiers/placements-collectifs/ce-quil-faut-savoir-sur-les-placements-collectifs-fonds-et-sicav.
External links
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