The Unauthorised Co-ownership Alternative Investment Funds (Reserved Investor Fund) Regulations 2025

Sections 261M to 261O and 261P(1) and (2) of the Financial Services and Markets Act 2000 (c. 8) (“the Act”) make provision about contracts and the rights and liabilities of participants in relation to co-ownership schemes authorised by an authorisation order under section 261D(1) of the Act. Section 261M confers certain rights on the operators of such schemes to act on behalf of participants in relation to authorised contracts. Section 261N makes provision about the effects of a person becoming or ceasing to be a participant, in terms of rights they acquire and the liabilities to which they are subject in relation to authorised contracts. Section 261O limits the liability of participants for debts incurred under, or in connection with, contracts which the operator is authorised to enter into on their behalf. Section 261P(1) and (2) provides for the segregation of the liabilities of participants in sub-schemes (where a co-ownership scheme is constituted as an umbrella co-ownership scheme).