For Immediate Release: Wednesday 12 November 2003

IMA RESPONSE TO CP185 AND ITS PROPOSALS FOR REGULATORY REFORM OF THE UK INVESTMENT FUNDS INDUSTRY

The Investment Management Association (IMA) today welcomed the Financial Services Authority’s (FSA’s) proposals outlined in ‘CP185 - The Collective Investment Schemes (CIS) Sourcebook - a new approach’.

Once adopted, the proposals will be the biggest regulatory change to impact the UK collective investment scheme industry, since the CIS rules came into being in 1988.

The main objectives of the review are to;

• Remove prescription by reducing the number of unnecessarily detailed rules from the CIS sourcebook

• Increase flexibility enabling managers to efficiently design and administer products

• Maintain a robust regulatory structure for authorised collective investment schemes for consumers across a range of different needs and expertise.

In welcoming the proposals, Richard Saunders, Chief Executive of the IMA said:

“The FSA has covered to our satisfaction almost all the issues on IMA’s ‘wish list’. IMA is particularly encouraged by the way in which the FSA has listened to the industry and pre-consulted.

When the new ground-rules come into effect next year, all investors, from the risk-averse retail investor to the more sophisticated individual and institutional investor, will be better catered for with a wider range of UK authorised funds. The proposals will mean that the UK becomes a more attractive domicile for funds. This is, of course, subject to the important proviso that a more workable tax regime will follow to complement the FSA reforms.”

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For further information, please contact:  

Notes to Editors:

1. CP 185

Information on CP185 can be found on http://www.fsa.gov.uk/pubs/cp/185/. A copy of the IMA’s briefing note to journalists is attached.

2. The Investment Management Association

The Investment Management Association (IMA) is the trade body for the UK investment management industry. It was formed in February 2002 as a result of a merger between the Fund Managers’ Association (FMA) and the Association of Unit Trusts and Investment Funds (AUTIF). IMA’s members provide investment management services to institutions (for example, life assurance companies, pension funds, and individual companies) and to private investors, through individual fund management agreements and pooled products such as authorised investment funds. Between them, IMA’s members manage over £2,000 billion worth of assets. More information can be found on www.investmentuk.org

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.