David Mowat – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by David Mowat on 2015-11-02.

To ask Mr Chancellor of the Exchequer, what plans he has to increase the number of simple, low risk investment products that are available to charitable organisations; and if he will make a statement.

Harriett Baldwin

Charities can invest their funds in a wide range of investment products. Charity trustees should refer to the Charity Commission’s guidance on investments, and should generally seek professional advice before investing.

There are some specific investment products available only to charities. Common Investment Funds and Common Deposit Funds are collective investment and deposit vehicles open to charities.

In addition, the government announced at Budget 2015 the introduction of a new Charity Authorised Investment Fund structure. This will bring new investment funds established for charitable purposes under FCA regulation, ensuring they receive the same regulatory oversight and protections as funds for retail investors.

The FCA is currently consulting on measures to implement the new fund structure. The proposals being consulted on include the registration of the fund as a charity, the role of advisory committees, and provisions on income distribution and capital allocation. The consultation will close on 7 December 2015.