For immediate release: Thursday 6th March 2003

END TO GERMAN DISCRIMINATORY TAXATION OF

INVESTMENT FUNDS BY FEBRUARY 2004

The IMA has welcomed the announcement from the German Government that, as part of a thorough overhaul of German investment fund law, it has included a commitment to end the tax discrimination of foreign funds.  This will ensure that German investors have equal access to both foreign and domestic funds.

Alan Ainsworth, Chairman of the IMA’s European Strategy Committee, commented:

“This is a major step forward and is extremely helpful.  We understand that the discrimination cannot be reversed immediately, but that the new laws will be amended accordingly as part of the UCITS implementation, which must be completed by February 2004.  We look forward to participating in drawing up the legislation.

“This reversal, of what would have been a very serious discrimination and barrier to cross-border business, is a result of intense lobbying by the UK industry, working in close co-operation with FEFSI and the German industry itself.  It is the first time that such a collaborative, pan-European effort has been launched.  We hope that this will set a precedent which will encourage the European authorities to take timely and effective action against other discriminatory measures that exist in Europe.”

For further information, please contact:

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

Notes to Editors:

1.   The German industry was represented by their investment funds trade association, Bundesverband Investment und Asset Management e.V. (BVI), and UK managers in Germany by Verband Der Auslandsbanken in deutschland E.V. (VAB) - the Association of Foreign Banks.  The Fédération Européenne des Fonds et Sociétés d’Investissement (FEFSI) is the European association for the investment funds industry.

2.   The IMA’s earlier press releases explain the situation in more detail

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.