Melville is the key architect and lead advocate of the UK Professional Investor Fund (PIF) proposal:
Melville has been instrumental in designing of the PIF:
- unauthorised contractual scheme
- closed-ended or a hybrid
- limited to institutional investors, with minimum £1m commitment
- effectively tax transparent & tradable units i.e. transfers not inhibited by transaction tax
- unlisted & operates with UK AIFMD regime: a full scope AIFM & depositary
PIF key attractions:
- one of the solutions for UK productive finance fund structures
- will enhance the UK's brand for fund and asset management
- will enable fund management houses to facilitate the UK government's goals for COVID-19 reconstruction, infrastructure revolution & levelling up the nation
- a "quick win" legislative solution
UK government and regulator representatives have constructively engaged with this proposal. There is widespread industry support for the PIF initiative, including from institutional investors as well as big business and SME fund and asset managers.
PIF Current News:
On 26 January 2021, UK HM Treasury issued a Call for Input/CFI in which the Government is consulting on the PIF contractual scheme/CFI and other unauthorised fund structures. HMT requests responses to questions the Call for Input/CFI, including question 30 to 37 (inclusive) focused on the PIF. The CFI closed on 20 April 2021.
Melville is very grateful to:
- AREF, INREV, IPF and other industry organsiations;
- fund managers, institutional investors, tax advisers, law firms and other professionals
responding to the CFI, and supporting the PIF.
Many respondents kindly utilised suggested precedent responses: responses developed by Melville in light of kind collaboration with research, tax, regulatory specialists, senior counsel (John Virgo) and other network contacts.
Download Suggested Precedent Responses
Let's hope that HM Treasury, taking into account the CFI responses, will progress with legislative implementation of the PIF. As indicated,the PIF can be delivered swiftly via a "quick-win" secondary legislative solution.
Media coverage on the PIF: