a level playing field for unit trusts and OEICs. The FSA was split into two during 2013 and the FSA became the Financial Conduct Authority ('FCA') for small and medium-sized firms with the Bank of England taking on responsibility for larger firms with systemic impact. Legal structure A board of directors usually headed by the authorised corporate director (ACD) – An ACD is a FCA authorised firm that assumes full control of the board. The board's responsibilities include: dealing with the day-to-day operation of the company, managing the company's investments, buying and selling the OEIC's shares on demand, and ensuring accurate pricing of shares at net asset value. Depositary – The depositary is a firm (usually a bank) authorised by the FCA, independent of the ICVC and of the directors of the ICVC. The depositary holds legal title to the OEIC's investments and is responsible for their safe custody. The depositary can appoint sub-custodians to take custody of the assets but will remain ultimately responsible. The depositary has responsibility for taking reasonable care to ensure the ACD complies with the key regulatory requirements. The shareholders have the rights to the OEIC's assets. Umbrella fund An OEIC can act as an umbrella scheme holding various sub-funds each with their own investment goals. For example, one OEIC may hold a subfund investing called UK smaller companies and another subfund called UK equity income. Each subfund has its own investment aims and is held separately from other subfunds within the same OEIC. This has some cost savings for the investment manager. Open-endedness OEICs are open-ended; the fund is equitably divided into shares which vary in price in direct proportion to the variation in value of the fund's net asset value. Each time money is invested new shares are created to match the prevailing share price; each time shares are redeemed the assets sold match the prevailing share price. In this way there is no supply or demand created for shares and they remain a direct reflection of the underlying assets. OEICs may be single-priced (there is one price at which shares may be bought or sold) or dual-priced, in which case there will be a buying price and a selling price, with the difference between the two being the bid–offer spread. See also Collective investment schemes Investment trusts UK company law Unit trusts Notes References Investment funds