On 27 April 2023, HM Treasury published a consultation paper on its proposals for a new unauthorised contractual scheme, the Reserved Investor Fund.

In its response to the UK funds regime review call for input on 10 February 2022, the government committed to undertaking further work to explore options for the introduction of a new fund structure: an unauthorised contractual scheme.

This proposed fund type would be called the Reserved Investor Fund (Contractual Scheme), and would be designed to complement and enhance the UK’s existing funds regime by meeting industry demand for a UK-based unauthorised contractual scheme with lower costs and more flexibility than the existing authorised contractual scheme.

The consultation invites views on proposals for the scope of the Reserved Investor Fund (Contractual Scheme) and the design of a tax regime for the fund.

The deadline for feedback to this consultation is 9 June 2023 and responses will inform the government’s next steps.