Fonds commun de placement translates to "investment funds" or "mutual funds", and are open-ended
collective investment
An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages inc ...
funds based that are neither trust or company law based. They are similar to
common contractual fund
A common contractual fund (CCF) is a collective investment scheme structure in Ireland introduced by the European Communities UCITS Regulations, 2003.
The CCF is an unincorporated body established by a management company under which the parti ...
s in Ireland,
tax transparent fund
A Tax Transparent Fund (TTF) - also known as an Authorised Contractual Scheme (ACS) Fund - is the proposed authorised collective investment scheme structure in the United Kingdom once the UK Finance Bill 2012 becomes an act and when the Financial ...
s in the UK and "fondsen voor gemene rekening" in the Netherlands.
In France, commonly referred to as FCP or F.C.P., these financial instruments are collective investments that are similar to the
SICAV
A SICAV is a collective investment scheme common in Western Europe, especially Luxembourg, Switzerland, Italy, Spain, Belgium, Malta, France, and the Czech Republic. SICAV is an acronym in French for ''société d'investissement à capital variabl ...
. They are not
investment companies
An investment company is a financial institution principally engaged in holding, managing and investing securities. These companies in the United States are regulated by the U.S. Securities and Exchange Commission and must be registered under the ...
; they are more like open partnerships. They have no independent legal status but exist as a set of defined relationships between investors, managers and custodian.
They invest in different
financial instruments
Financial instruments are monetary contracts between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership interest in an entity or a contractual right to receive or deliver in the form ...
, but they do not have the tax status of the SICAV.
They are typically issued in the
French-speaking
French ( or ) is a Romance language of the Indo-European family. It descended from the Vulgar Latin of the Roman Empire, as did all Romance languages. French evolved from Gallo-Romance, the Latin spoken in Gaul, and more specifically in Nor ...
countries of
Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...
.
See also
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Common fund
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.
The model for this type of arrangement is the Fonds commun de placement common in Fran ...
*
Collective investment scheme
An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages inc ...
References
{{Investment-management
Investment funds