PROPERTY INVESTMENT FUNDS – POTENTIAL FOR MORE INVESTOR CHOICE?

Responding to the Treasury consultation on property investment funds, Julie Patterson, IMA’s Director of Regulation and Taxation said,

“ The proposals to introduce Real Estate Investment Trusts in the UK will increase investment options for investors and is welcome. However, a key concern is that there has been no consideration given to the impact on the retail market and the potential risk to unsophisticated investors. Investor protection safeguards already exist for open-ended funds. Moreover, one simple change to the Collective Investment Scheme tax regime – which would remove tax leakage at vehicle level - would be the catalyst for change in the property investment market which the Government so desires.”

William Hill, Board member of APUT and Head of Property at Schroders, added,

“ Making property more accessible is clearly desirable to reduce risk in pensions and other savings schemes. Investment trusts will be part of the solution but following through on some simple changes to the unit trust structure now will make an immediate impact.” 

Attachment 1 - Joint Letter

Attachment 2 - Joint Response

-Ends-

For further information, please contact:

Helen Stephenson, Communications Officer, IMA                        020 7831 0898

William Hill, Board Member, APUT                                             020 7658 6726    

Out of hours contact:

Mona Patel, Head of Communications, IMA                                 07834 089332

Notes to Editors:

The joint IMA/APUT response to the consultation document “Promoting more flexible investment in property” is attached.

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