The government is to give its policy response to the Charity Pooled Funds Consultation as part of the 2010 budget, which is expected to take place before the general election.

According to the summary of responses to the consultation, if the government decides to take forward the Charity AIF proposal or any of the alternatives suggested during the consultation, “then a further detailed consultation would follow, including if appropriate, draft legislation and regulatory rules”.

Alternatives suggested included extending the powers of the FSA to regulate CIFs and CDFs without having to create a new AIF for charities, and making CIFs and CDFs exempt charities with the FSA as principle regulator, as proposed by the Charity Law Association.

However, the summary adds: “The majority of respondents were positive about the charity AIF proposal.

“Many felt that a charity AIF open only to charity investors would maintain the special status of CIFs and CDFs, whilst coming within an existing and familiar framework.”