For immediate release: Wednesday 16th October 2002

IMA WELCOMES CHANGES TO TAX TREATMENT OF FUNDS

The three measures announced by the Treasury today respond to representations the industry has made and will help UK fund managers to compete in Europe.

Richard Saunders, Chief Executive of the IMA, commented:

”Two of these three measures – concerning the “not ordinarily resident” declarations and Inheritance Tax – remove significant obstacles for UK fund management companies wishing to sell UK fund ranges on the Continent. Investors have often preferred funds located other than in the UK, because of the extra layers of tax and regulation, both perceived and real, associated with UK funds.  The third is a welcome encouragement for fund managers who wish to reorganise and consolidate their fund ranges.

“All three will go some way towards levelling the playing field between UK and Continental funds.  In indicating their intention to introduce these measures, the Government has shown welcome flexibility.”

- ends -

For further information please contact:

Nathan Hall, Tax Adviser, IMA, 020 7831 0898

Clare Arber, Head of Communications, IMA, 020 7831 0898

65 Kingsway London WC2B 6TD

Tel: +44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975

www.investmentuk.org

Investment Management Association is a company limited by guarantee registered in England and Wales Registered number 4343737.  Registered office as above.