Melville is the key architect and lead advocate of the UK Professional Investor Fund (PIF) proposal. He is recognised as the progenitor of the PIF:

Melville has been instrumental in designing of the PIF:

• unauthorised co-ownership AIF
• 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 within the UK AIFMD regime with an AIFM & a depositary
• plugs a gap in the UK funds regime, particularly for real estate fund managers  

PIF key attractions:

• strengthens the UK's fund offering and improves competitiveness  
• lowers the barriers for SME asset managers to launch new products
• speed to market and low-cost, in terms of launch and operation
• increases the number of closed-ended or hybrid investment vehicles in the UK
• promotes investment in longer-term, less liquid assets
  

• will assist in getting growth going in the UK economy as well as creating jobs and  opportunities
  

• addresses investors' preference for an onshore fund structure that is FCA regulated
• a "quick win" legislative solution

The PIF will facilitate fund management houses drive the UK government's goals to level up the nation as well as accelerate the infrastructure and green industrial revolutions. 

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 large and SME fund managers. 

PIF Latest Update:

28 February 2023 the Financial Conduct Authority (FCA) confirmed in its Regulatory Initiatives Grid page 45 that "The Government is progressing work on proposals on the establishment of an unauthorised contractual scheme for professional investors…. through the [Financial Services and Markets] Bill".

Regulatory Initiatives Grid

7 December 2022 HM Treasury tabled amendments which were added to the Financial Services and Markets Bill (FSMB) at the Report Stage: see FSMB clause 60. https://bills.parliament.uk/bills/3326

10 February 2022 HM Treasury published on  its responses to feedback from respondents to its 26 January 2021 Call for Input (CFI). In these responses, the Government confirms that it and the FCA propose to take forward "further work to explore options for the introduction of a new unauthorised contractual scheme fund structure". 

https://www.gov.uk/government/publications/review-of-the-uk-funds-regime-a-call-for-input

Melville is very grateful to:

- AIMA, AREF, BPF, The Investment Association, INREV, IPF and other industry organisations;

- fund managers, institutional investors, tax advisers, law firms and other professionals

for 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 Responses to the HM Treasury 26 January 2021 Call For Input

Melville looks forward to engaging with Government and the FCA in progressing the further work to explore options for other legislative provisions for the PIF.  

Media coverage on the PIF:

Presentations: