Open-ended investment company (OIEC) meaning

An open-ended investment company is a UK corporate collective investment scheme whose share capital varies as investors subscribe and redeem, with shares typically issued and redeemed at net asset value. The vehicle is created and defined by statute: it is incorporated under the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) made under fsma 2000, and, if authorised, is regulated by the FCA under the COLL Sourcebook. Key features include an authorised corporate director (ACD) and a depositary, the ability to operate as an umbrella with segregated liability between sub-funds, and eligibility for authorisation as a UK UCITS, NURS or QIS. It is widely used for retail and institutional funds (including PAIFs), offering daily liquidity and operational simplicity compared with unit trusts. For UK tax purposes, an OEIC is treated as a company; an authorised OEIC is an Authorised Investment Fund with a specific regime governing the taxation of its distributions and gains and the taxation of investors. Usage and treatment are consistent across England & Wales, Scotland and Northern Ireland. In Ireland, the analogous regulated vehicles are the ICAV and the investment company under the Companies Act 2014 (regulated by the Central Bank of Ireland); the term OEIC is not used.