// Workers AI · dad joke modeWhat did the common fund say? "I'm invested in our relationship.
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A common fund is a form of collective investment scheme based upon contractual law rather than being enacted through a trust, corporation or insurance policy.[1]
The model for this type of arrangement is the Fonds commun de placement common in France and Luxembourg.[2]
The common contractual fund in Ireland is another prominent example.[3]
Legal structure
[edit]A common fund is typically established under contractual law rather than through a corporate or trust structure. Under this model, the fund itself has **no separate legal personality**; instead, assets are held collectively on behalf of unitholders and managed by an authorised management company on their behalf. As a result, the management company and its custodian have responsibility for the fund’s assets, but the fund itself cannot hold assets or incur liabilities in its own name.[4][5]
Under French law, for example, a *fonds commun de placement* (FCP) functions as a collective investment scheme without legal personality, where investors co-own the fund’s assets proportionally to their units. The management company acts in the name of the fund to manage and invest the assets, while a separate custodian holds the assets on behalf of the unitholders.[6]
See also
[edit]References
[edit]- ↑ The Granting of Treaty Benefits with Respect to the Income of Collective Investment Vehicles. Organisation for Economic Co-operation and Development. 2010.
- ↑ "Fonds commun de placement (FCP)". Autorité des marchés financiers. Retrieved 2025-01-13.
- ↑ "Ireland's Common Contractual Fund | Deloitte Ireland". www.deloitte.com. Retrieved 2025-01-13.
- ↑ "Fonds commun de placement (FCP) definition". Board of the Fund for the Americas. Retrieved 27 January 2026.
- ↑ "Alternative investment fund structures in France". International Comparative Legal Guides. Retrieved 27 January 2026.
- ↑ "What you need to know about collective investments (including FCPs and SICAVs)". Autorité des marchés financiers (AMF). Retrieved 27 January 2026.
External links
[edit]
Media related to Funds at Wikimedia Commons
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