For immediate release: Friday 1 July 2005 

IMA CONSULTS ON AN UPDATED STATEMENT OF RECOMMENDED PRACTICE (SORP) FOR FINANCIAL STATEMENTS OF AUTHORISED FUNDS

IMA invites comments on its exposure draft of an updated SORP for authorised unit trusts and open-ended investment companies. The deadline for responses is 30 September 2005.

IMA is committed to reviewing the SORP on an ongoing basis. The main changes in this revision are:

• Reflecting the provisions of the FSA’s new rulebook for authorised funds (COLL), introduced in 2004
• More comprehensive guidance on accounting and reporting of derivatives
• Disclosure improvements mainly implementation of the recommendations of IMA’s CIS Governance Review recommendations, including the Total Expense Ratio disclosure
• Amended Statement of Total Return and Balance Sheet to reflect convergence of UK GAAP with international financial reporting standards (IFRS) in respect of presentation requirements
• Move to bid valuations instead of mid, as this is increasingly being demanded by institutional investors. It will also make the SORP consistent with FRS26 which converges UK GAAP with IAS39
• Bond yields to reflect amortisation to maturity

The SORP follows UK GAAP and has adopted International Financial Reporting Standards only to the extent that UK GAAP has converged with IFRS and only to the extent that the convergence is a requirement upon authorised funds.

A copy of the invitation to comment and the exposure draft is attached. Responses should be sent to Uner Nabi, Senior Adviser – Financial regulation at unabi@investmentuk.org

-Ends-

For further information, please contact:
Uner Nabi, Senior Adviser – Financial Regulation, IMA, 020 7831 0898
Helen Stephenson, Communications Officer, IMA, 020 7831 0898

Out of hours contact:
Mona Patel, Head of Communications, IMA, 07834 089332