A collective investment scheme which invests in futures and options and other derivative instruments, which does not provide for the protection of capital invested in the scheme, can only be authorised as a non-UCITS fund.

The provisions are similar to the provisions for a capital protected futures and options fund with the exception of the provisions relating to the protection of capital.

In addition (these do not apply to a Qualified Investor Fund)

(i) the fund's assets must include liquid assets which always have a total minimum value at least equal to the sum of all margin deposited and premium paid in respect of open transactions;

(ii) risk warnings must be given dealing with the above average risk of the fund, its suitability as being only for investors able to take that risk and recommending that no more than 5% of an investor's portfolio should be invested in the fund. Before authorising this scheme the Financial Regulator must be satisfied that the investment advisors have specific experience with this type of fund. The Financial Regulator Notice NU 21 specifes further the restrictions in this type of scheme.