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For
Immediate Release: Wednesday 21 May 2003
The
CIS Sourcebook – A New Approach
A
Review of the Unit Trust & OEIC Rules
The IMA has welcomed the move by the
FSA to undertake a comprehensive review of the rules that
govern UK authorised investment funds.
Collective Investment Scheme regulation
has become increasingly prescriptive and the IMA welcomes
the announcement that the FSA will remove many of the extra
layers of detailed regulation.
In doing so, the IMA’s main aim will be to ensure
that these regulations become more principle-based, allowing
greater flexibility for both product development and
administration, whilst maintaining key investor protection
safeguards.
UK authorised (onshore) investment
funds will have to adhere to one of three regulatory
regimes: Retail funds that comply with the UCITS Directive;
Non-UCITS retail funds; and non-retail funds (for
institutional clients).
In addition, the regulatory regime between unit
trusts and OEICS is being aligned.
The proposals for non-retail funds will
have a ‘lighter touch’ regime, with very flexible
investment options. Also, they will not require the same extensive consumer
safeguards and accompanying literature that retail funds
require. The
IMA is working closely with the Inland Revenue to ensure
that the current tax regime is updated to reflect these new
developments.
Julie Patterson, Director of Regulation
& Taxation, at the IMA commented:
“We are
very much encouraged by the proposals within this review of
the CIS rules, which will greatly reduce the complexity of
fund regulation and has answered the industry’s call to
facilitate product development and reduce inefficiencies.
“This
is the most significant set of proposals for our industry
since the late 80s. Following the establishment of the FSA, the revised UCITS
Directive and this major review, we look forward to a period
of regulatory stability.”
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Ends -
For
further information, please contact:
Julie
Patterson, Director, Regulation & Taxation, IMA, 020
7831 0898
Ros
Clark, Technical Adviser, IMA, 020 7831 0898
Clare
Arber, Head of Communications, IMA, 020 7831 0898
Notes to
Editors:
UCITS stand for “Undertaking for Collective Investments in
Transferable Securities” and is an EU Directive which was
adopted in 1985 for those retail investment funds which
invest in securities and bonds and can be marketed and sold
in EU member states.
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.
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