Management Company and "self-managed" SICAV status
All investment funds (UCITS, Part II UCIs and SIFs) must either appoint a Management Company or be "self-managed" (if they are not organised under the contractual form). UCITS can only appoint a Management Company subject to Chapter 15 of the UCI Law whereas, Part II UCIs and SIFs may appoint either an AIFM or a Management Company subject to Chapter 16 of the UCI Law.
The activity of a Chapter 15 Management Company is the collective portfolio management of at least one UCITS, which encompasses three sub-functions:
- investment management;
- risk management
- administration; and
- marketing.
A Chapter 15 Management Company might, in addition (subject to additional requirements in terms of capitalisation, general organisation of the Management Company, and compliance with certain MiFID rules):
- manage individual portfolios on a discretionary basis for private clients or pension funds;
- provide investment advice; and
- perform safekeeping of fund’s shares or units.
The activity of a Chapter 16 Management Company is the collective portfolio management of all types of investment vehicles, except UCITS.
When the fund does not appoint a Management Company and is organised under a corporate form, it may alternatively choose to be a self-managed SICAV/SICAV. It remains a “product” as such, the units of which are to be sold to investors, it cannot perform services to another fund or client, and the management of its assets shall be its sole purpose.
