Unit Trusts, OEICs, Pricing and Settlement
Legal structures and parties, open-ended pricing, dealing and settlement.
How to prepare for CISI Introduction UK
Study to the syllabus version covering the exam date, learn instrument structures and calculations, then apply the introductory UK regulatory and advice boundaries without importing the deeper UK Financial Regulation unit.
Core concepts
Concept 1
Distinguish unit trusts from OEIC, ICVC and SICAV structures.
Exam cue: Identify legal ownership and the governing structure.
Concept 2
Explain manager, trustee, authorised corporate director and depositary roles.
Exam cue: Match oversight and management roles to the vehicle.
Concept 3
Outline pricing, buying, selling and settlement of open-ended funds.
Exam cue: Connect subscriptions or redemptions to changes in the fund.
Risk pitfalls and guardrails
Treating an OEIC as a unit trust.
Guardrail: Check roles, ownership, cash-flow direction, units, version dates, protection limits and whether the option claims advice, authorisation or certainty that the facts do not support.
Confusing the depositary with the investment manager.
Guardrail: Check roles, ownership, cash-flow direction, units, version dates, protection limits and whether the option claims advice, authorisation or certainty that the facts do not support.
Assuming open-ended fund interests trade continuously on an exchange.
Guardrail: Check roles, ownership, cash-flow direction, units, version dates, protection limits and whether the option claims advice, authorisation or certainty that the facts do not support.
Memory anchors
Unit trust
An open-ended collective constituted as a trust with units, a manager and a trustee.
OEIC
An open-ended investment company that issues or redeems shares as its capital changes.
Depositary
The independent safekeeping and oversight party for an authorised corporate fund.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
What is the legal form of a UK unit trust?
Who operates and makes investment decisions for a unit trust?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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