Publication of LTAF model constitutional documents

In November 2020, the industry-led Productive Finance Working Group (the Working Group) was established by the Bank of England, HM Treasury and FCA to develop practical solutions to the barriers to investment in long-term, less liquid assets.

Simmons & Simmons has long supported the development of a regime which allows for wider access to long-term productive capital, and we were notably the only law firm represented on the Working Group. The recommendations of the Working Group were instrumental to the development of the Long-Term Asset Fund (LTAF). See our LTAF webpage here and our page with useful links to LTAF resources here.

Since then, we have been advising our major asset manager clients on the development of LTAFs – notably Schroders Capital on the establishment of the first LTAF in the UK – and continuing to work closely with a number of trade associations in this area.

We were asked by the Working Group to prepare model constitutional documents for the LTAF. The LTAF model co-ownership deed for ACSs has been published for the first time today, together with an updated LTAF model instrument of incorporation for ICVCs to reflect the regulatory changes which have occurred since the LTAF rules came into effect. These model constitutional documents have been published by the various trade association members of the Working Group. Links to the LTAF model co-ownership deed for ACS and model instrument of incorporation for ICVC can be found below.