Information: For immediate release Wednesday 8 December 1999

INVESTMENT FUNDS INDUSTRY CLARIFIES ABI ANNOUNCEMENT

The press announcement from the Association of British Insurers (ABI) says that an independent accreditation body has been established for the investment industry. The Association of Unit Trusts and Investment Funds (AUTIF), whose members are responsible for over 99% of the funds under management of the unit trust and open-ended investment company industry, made clear that it is not part of this initiative. This is an ABI-endorsed initiative, sponsored by a number of its members.

Philip Warland, Director General of AUTIF, said:

"In principle the raising of standards is to be welcomed, but the investment industry already operates to high standards, which are unambiguously enshrined in regulation. A second accreditation for investment funds is superfluous."

Whilst AUTIF strongly supports efforts to raise standards in the financial services industry, it pointed out that unit trusts and oeics are already "accredited" from top to bottom through authorisation and monitoring by the Financial Services Authority, (FSA). The FSA sets high standards, which product providers often well exceed. To suggest otherwise, gives a false impression.

For further information please contact:
Alan Ainsworth, Chairman, AUTIF - 0171 464 5739
Philip Warland, director General, AUTIF - 0171 831 0898
Anne McMeehan, Director of Communications, AUTIF - 0171 831 0898
Clare Arber, PR Manager, AUTIF - 0171 831 0898
Susie Poote, Communications Assistant, AUTIF - 0171 831 0898