Melville is the key architect and lead advocate of the UK Reserved Investor Fund (RIF) proposal. 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
• 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 AIFMD 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 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 RIF 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 RIF initiative, including from institutional investors as well as large and SME fund managers. 

RIF Latest Update:

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 

27 April 2023 HM Treasury & HMRC issued their consultation (now closed) with legislative options for an unauthorised contractual scheme proposed to be branded the Reserved Investor Fund or RIF.

https://www.gov.uk/government/consultations/reserved-investor-fund-consultation

Melville is grateful for the positive responses to this consultation, including those from AREF and INREV attached. He hopes that, in view of the responses, government will decide to introduce tax legislation the RIF - and UK managers can launch RIFs from April 2024.    

28 February 2023 the Financial Conduct Authority 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

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 RIF.

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.

Media coverage on the RIF (previously known as the PIF)

Presentations: