IMA ISSUES MARKET TIMING GUIDELINES FOR

INVESTMENT FUND MANAGERS

The Investment Management Association (IMA)¹ has today issued “Market Timing: Guidelines for managers of investment funds”.

The guidelines detail the regulatory tools available to investment fund managers and give guidance on supervisory structures which will assist managers in deterring and dealing with market timing activity.

Today’s guidelines are an extension of “Market Timing. A technical discussion paper” which was published in December 2003 as a response to the FSA’s investigation into possible market timing and arbitrage activity in the UK. Positive feedback on this paper from both the industry and the FSA indicated a clear need to expand it into more formal guidelines for managers of unit trusts and OEICs.

The guidelines take into account new regulations which came into effect as a result of “CP185: The CIS Sourcebook – A new approach”, namely fair value pricing and dealing cut off points. As part of this process, IMA in conjunction with the Depositary and Trustee Association², has also issued more detailed guidelines on Fair Value Pricing.

Richard Saunders, Chief Executive of the IMA commented:

“The industry was encouraged by the FSA’s findings that, in contrast with the situation in the United States, there is limited evidence of market timing in the UK investment funds industry. Nevertheless it is important to ensure that investors are protected against such practices in the future. These new guidelines, which have been drawn up after widespread consultation within the industry, will help to ensure this.”

Market Timing – Guidelines for Managers of Investment Funds

Pricing Guide for Investment Funds – Fair Value Pricing

-Ends-

For further information, please contact:

Helen Stephenson, Communications Officer, IMA/DATA, 020 7831 0898

Richard Saunders, Chief Executive, IMA, 020 7831 0898

John Cargill, Deputy Chairman, DATA, 0131 451 7246

Out of hours contact:

Mona Patel, Head of Communications, IMA,  07834 089332

Notes to Editors:

1. The Investment Management Association is the trade body representing the UK asset management industry, representing £2 trillion funds under management and over 99% of the UK investment funds industry (unit trusts and OEICs).

2. The Depositary and Trustee Association (DATA) was formed in 1999 and represents the industry views of depositaries of open-ended investment companies and trustees of unit trusts within the UK. The Investment Management Association (IMA) hosts its secretariat.

DATA’s prime objective is to promote, support, oppose or propose changes in the relevant UK legislation, in respect of the responsibilities of members of the Association and to promote and support the development of the depositary and unit trust trustee industry in the UK. In addition, DATA undertakes to promote and support research, and to coordinate and support initiatives for the future growth of the industry.

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.