RIF - Reserved Investor Fund
UK Fund Managers can launch the Reserved Investor Fund from 19 March 2025.
Melville is the key architect and lead advocate of the Reserved Investor Fund or RIF. He is recognised as the progenitor of the RIF:
Melville has been instrumental in designing of the RIF:
- unauthorised co-ownership AIF
- closed-ended or a hybrid i.e. flexible with redemptions.
- limited to institutional investors & (£1m min. commitment) high net worth investors
- effectively tax transparent & tradable units i.e. transfers not inhibited by transaction tax
- unlisted & operates within the UK AIFM regime with a UK AIFM & UK depositary
- plugs a gap in the UK funds regime, particularly for real estate fund managers
RIF key attractions:
- strengthens the UK's fund offering and improves competitiveness
- lowers the barriers for asset managers to launch new products
- speed to market and low-cost, in terms of launch and operation
- addresses investors' preference for an onshore fund structure that is FCA regulated
25 February 2025: Co-ownership Contractual Schemes (Tax) Regulations 2025
https://www.legislation.gov.uk/uksi/2025/200/contents/made
26 February 2025: Co-ownership Contractual Schemes (Reserved Investor Fund) Regulations 2025
https://www.legislation.gov.uk/uksi/2025/216/contents/made
with both Regulations coming into force on 19 March 2025.
The RIF will support investment in longer term less liquid private assets like housing, commercial real estate, infrastructure and crucial economic projects.
UK government and regulator officials have constructively engaged with this proposal.
Previous RIF legislative progress:
30 October 2024 Autumn Budget 2024 paragraph 5.117:
Reserved Investor Fund and related provisions – The government is proceeding with the introduction of the Reserved Investor Fund (Contractual Scheme) – a new type of UK-based investment fund. Related provisions will also make minor changes to the tax rules in respect of Co-ownership Authorised Contractual Schemes. Secondary legislation will be brought forward before the end of the tax year 2024-25.
24 May 2024 Royal Assent of Finance (No.2) Act 2024 with Section 20 containing provisions for the RIF.
https://www.legislation.gov.uk/ukpga/2024/12/section/20
21 May 2024 House of Commons Public Bill Committee ordered Finance (No.2) Bill 2024 Clause 20 to stand part of the Bill.
2 April 2024 The government's draft tax regulations for the RIF.
13 March 2024 Finance (No.2) Bill 2024 Clause 20 refers to tax legislation for the RIF.
https://publications.parliament.uk/pa/bills/cbill/58-04/0179/230179.pdf
6 March 2024 the government is proceeding with tax rules to introduce the RIF.
https://www.gov.uk/government/consultations/reserved-investor-fund-consultation
30 November 2023 the Financial Conduct Authority confirmed in its Regulatory Initiatives Grid page 44 that "The Government is progressing work on proposals on the establishment of an unauthorised contractual scheme for professional investors."
29 June 2023 Royal Assent of the Financial Services and Markets Act 2023, with Section 64 establishing RIFs (referred to as unauthorised co-ownership AIFs) in primary legislation:
https://www.legislation.gov.uk/ukpga/2023/29/section/64/enacted
See also paragraphs 475-482 and 1317-1324 inclusive explanatory notes
Melville is grateful to:
- ABI, 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 RIF.
He is also grateful for the assistance from research, tax & regulatory specialists, senior counsel (John Virgo) and other contacts in developing the design of the RIF.
Webinar:
21/03/24: Seize the RIF opportunity - Alternative Investment Management Association/ Association of Real Estate Funds/British Property Federation/The Investment Association/European Investors in Non-Listed Real Estate/Investment Property Forum/Real Estate Investors’ Forum
Articles:
25/04/25 Social Market Foundation Commentary: Reasons to be optimistic for the UK:
https://www.smf.co.uk/commentary_podcasts/reasons-to-be-optimistic-for-the-uk/
20/03/25 Funds Europe: A catchy new RIF:
https://funds-europe.com/a-catchy-new-rif/
12/03/25 Property Week: New RIF is music to investors’ ears
New RIF is music to investors’ ears | Property Week
28/02/25 IPE Real Assets: RIF: Unlocking growth and investment opportunities in the UK
26/02/25 IPE Real Assets: UK onshore ‘reserved investor fund’ launch set for March 2025
30/10/24 IPE Real Assets: Industry welcomes budget boost for UK infra and housing
17/05/24 The Goan EveryDay: Goan spearheads plans for new type of investment fund in UK
16/05/24 UK REIIF: News: New Reserved Investor Fund to Boost Town Centre Regeneration
15/05/24: IPE Real Assets: News: Real estate associations call for launch of UK reserved investor fund this year
15/05/24: Property Week: Industry ‘encouraged’ by draft regulations for Reserved Investor Fund
Industry ‘encouraged’ by draft regulations for Reserved Investor Fund | News | Property Week
19/04/24: Tax Journal: the new Reserved Investor Fund: what we know so far
The new Reserved Investor Fund: what we know so far (taxjournal.com)
5/04/24: IPE Real Assets: Guest view: How should UK real estate managers choose between a RIF and REIT?
22/03/24: IPE Real Assets: Guest view: UK fund managers – seize the RIF opportunity
07/03/24: UK to legislate for reserved investor funds in boost for real estate managers
06/03/24: Property EU: UK to proceed with RIFs much to fund industry delight
19/05/23: IPE Real Assets: Guest view: Let’s get the UK’s Reserved Investor Fund done
05/05/23: Government launch of new fund vehicle proposals to boost real estate investment
28/04/23: IPE Real Assets: UK government consults on creation of ‘reserved investor fund’
08/12/22: Property Week:PIF changes to boost property funds sector
https://www.propertyweek.com/news/pif-changes-to-boost-property-funds-sector/5123208.article
02/12/22: IPE Real Assets: UK government prepares to create new onshore closed-ended funds
16/04/22: Apex Group, Professional Investor Funds could fill the UK fund sector gap
https://www.apexgroup.com/insights/key-issues-relating-to-fund-management/
18/03/21: Property Week, Professional Investor Funds (PIFs) could fill the UK fund sector gap
24/2/21: IPE Real Assets, UK funds review: chance to create real estate fund that meets institutional needs
3/2/21: Property Week, Government call for input on property fund structure change
16/12/20: Property Week, Government launches second consultation on REIT tax structure
3/8/20: IPSX, Podcast: Onshore versus offshore
https://www.ipsx.com/news/podcasts-onshore-versus-offshore/
2/7/20: AREF & IPF, Webinar: PIF Proposal Explained
https://www.aref.org.uk/events/ems-event-calendar/aref-ipf-webinar-pif-proposal-explained.html
13/05/20: Lexis Nexis, A Gap in the market
4/3/20: FTfm, UK investment body lobbies for property fund revamp
https://www.ft.com/content/f6677d00-919c-45a1-a6c1-0840b3b919ff
May/June 2019: IPE Real Assets, A new UK fund structure
https://realassets.ipe.com/brexit/melville-rodrigues-a-new-uk-fund-structure-please/10030940.article
"Congratulations to Melville Rodrigues for doggedly working to bring this to fruition over a period of years" November 2024
- Paul Richards, CEO , Association of Real Estate Funds
"It’s rare that I can point to someone so single handedly making something happen but this is one of those cases. Congratulations Melville on all your efforts to bring the RIF into existence." October 2024
- Peter Capper, Senior Adviser, International Fund Regulation at The Investment Association
"Very well done indeed on getting the Government finally to bring in RIFs – a most tenacious effort and hopefully it will be well-appreciated by the real estate capital management industry. We certainly do." March 2024
- Hugo Llewelyn, CEO, Newcore Capital
“Huge credit goes to Melville Rodrigues who has pushed forward this initiative from day one”. March 2024
- John Forbes, Principal, John Forbes Consulting LLP
"Congratulations on seeing the ‘birth’ of the RIF! Clearly wouldn’t have happened absent your spearheading of the initiative. It’s a rarity in our world that people get to see such a ‘complete’ example of an initiative that is proposed, worked up, then endorsed and launched by the Government – you should be very proud of it." March 2024
- Head of Investment Managment Tax, Global Fund Manager
"The more I read about the RIF, the more I wish someone had taken your initiative years ago!" January 2024
- UK Real Estate Fund Manager
“Thank you very much for the opportunity to work with you on this exciting and certain to be market shaping new vehicle!” June 2023
- UK Tax and Funds Specialist, one of the Big Four accounting firms
"Melville, 100 x well done on your remarkable achievement!" May 2023
- Tax Specialist, Magic Circle law firm
“Special thanks to Melville for all his initiative, leadership and hard work in progressing the PIF proposal. We believe the PIF will be an excellent product that would introduce an important new choice for investors and that the real estate investment industry would enthusiastically take it up.” October 2022
- Jeff Rupp INREV Director of Public Affairs
"What you have done in terms of spearheading this new fund structure and pushing it through as well as ironing out all the structural difficulties so that it is as attractive as possible for the asset management market is nothing short of ground-breaking." June 2022
- Funds Specialist, Magic Circle law firm
"The time has come to modernize, standardise and regulate a form of tax-transparent closed-ended or hybrid fund. The PIF submission is welcome and timely." August 2020
- Andrew Baum, Professor of Practice, Said Business School, University of Oxford
"There appears to be a clear and genuine need/preference for them to invest via an onshore tax-transparent vehicle. PFR estimate that only 25% of €260bn in AuM in closed-end funds launched by UK based fund managers and targeting UK and European assets in the last 10 years have utilised a UK onshore fund structure. There is a clear opportunity for the UK fund management industry" September 2020
- Jane Fear, Director, Property Funds Research
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