IFM09855 - Umbrella schemes: introductions
Chapter 11 of Part 2 of the Regulations sets out how that part is modified in various regards where a scheme is an “umbrella co-ownership scheme”, referred to generally in this technical note as an ‘umbrella scheme’. Such a scheme is defined as a co-ownership scheme which provides arrangements for the separate pooling of the contributions of the participants and the profits and income out of which payments are to be made to them, and under which the participants are entitled to exchange rights in one pool for rights in another.
An ‘umbrella RIF’ means an umbrella co-ownership scheme which is a RIF. In other words, it is the umbrella and not the sub-schemes that is a RIF on entry to the RIF regime.
A ‘sub-scheme’ in relation to an umbrella co-ownership scheme or an umbrella RIF, means the arrangements constituting the scheme or RIF so far as they relate to a separate pool of property. References to participants in relation to a sub-scheme are references to participants in those separate arrangements.
The rest of this section explains how the rules in Part 2 of the Regulations are adapted for umbrella schemes. In each case, the regulation referred to explains how the language in various other regulations is adapted so that it works effectively when considering an umbrella scheme.