Information: For immediate release Wednesday 3 November 1999

AUTIF TO PRESS FOR A REGULATORY REGIME THAT FOCUSES ON OUTCOMES, NOT DETAILED PROCESSES

Speaking at the Unit Trust and Investment Funds annual conference (today), Alan Ainsworth, Chairman of the Association of Unit Trusts and Investment Funds, set out the objectives and priorities facing the industry and AUTIF over the next few years. One of AUTIF’s top priorities will be to push for regulation that concentrates on the preferred outcome, rather than specifying the detailed processes to achieve that outcome.

Alan Ainsworth explains:

"The development of a strong regulatory culture with AUTIF firms over the last 15 years leads us to believe that a highly prescriptive regime is no longer an appropriate stance.

"We favour strongly a "broad guidelines" approach, with the emphasis on the quality of outcomes rather than prescribing action. In some areas, such as training and competence, the FSA seems determined to take this more flexible approach; in others, such as the recent consultation paper on approved persons, the old prescriptive mentality remains evident. Both cannot sit side by side, without causing confusion and uncertainty within the industry.

"However, underlying all this work is our determination to build and maintain good relations with the regulator. We never lose sight of this objective."

The Chairman also commented on other primary issues and strategic priorities having an impact on the industry. These are:

• Individual Savings Accounts
• Stakeholder pensions and Pooled Pensions
• Investment European legislation
• Electronic trading in units and OEIC shares
• Closer involvement with the implementation of Government policy
• E-commerce

Details can be found in the speech, which is attached.

For further information please contact:
Alan Ainsworth, Chairman, AUTIF - 0171 464 5739
Anne McMeehan, Director of Communications, AUTIF - 0171 831 0898
Clare Arber, PR Manager, AUTIF - 0171 831 0898

Attachment - Alan Ainsworth's Speech