Which fund structure is set up as a company but not under the Companies Act?

• A. Authorised Unit Trust
• B. OEIC (ICVC/SICAV)
• C. Unit Trust
• D. Investment Trust

Answer: (B)

The structure being tested is a fund that is a company in form but not governed by the Companies Act. OEICs, also known as ICVCs or SICAVs, are set up as a company, yet they are established under the Open-Ended Investment Companies Regulations rather than under the Companies Act. This means they have a corporate structure with directors and a single legal entity, but their capital is variable and created through issuing or redeeming units, not by issuing traditional shares under the Companies Act.

In contrast, a Unit Trust is a contractual arrangement (not a company) managed by trustees; an Investment Trust is a company formed under the Companies Act and typically operates as a closed-end fund with a fixed share capital; an Authorised Unit Trust is a regulated unit trust rather than a company. The OEIC/ICVC structure uniquely combines a company form with regulation outside the Companies Act, which is why it’s the correct choice.