Meaning of a mutual fund: Introduction - Section 356 TIOPA 2010
The meaning of the term ‘mutual fund’ is drawn widely and encompasses any arrangements with respect to property of any description, including money - in other words, it does not matter what the underlying investments are.
Whether arrangements amount to a mutual fund depends on three conditions (Conditions A to C), all of which must apply to the ‘participants’ of the arrangements being considered. The conditions bring within the meaning of ‘mutual fund’ those arrangements that, broadly, have the characteristics of pooled investments.
‘Participants’ are the beneficial owners of interests in the arrangements or the property underlying the arrangements whether or not they have legal ownership of their interests.
If arrangements relate to a number of separate pools of assets then each asset pool is considered separately. Similarly if an asset pool has different classes of interest then each class of interest is considered separately. For more details see S360 & S361 TIOPA 2010, which relate to umbrella arrangements and arrangements comprising more than one class of interest (see OFM08000 and OFM09000).
There are exceptions to the definition of a mutual fund given by S357 TIOPA 2010 (see OFM06000 onwards).
Conditions A to C are considered in more detail at OFM05200