For immediate release: Tuesday 1 November 2005

IMA OFFERS OWN WAY FORWARD FOR WIDER-RANGE RETAIL INVESTMENT PRODUCTS

In its response to the FSA�s discussion paper �Wider-range Retail Investment Products� the Investment Management Association has proposed that the FSA adopt a common disclosure regime covering all products available to retail investors.  Fundamental to such a regime is that risks are properly explained to investors.  The current rules for authorised collective investment schemes and investment trusts provide ideal models. 

IMA has based its position on six key considerations.  These are: ensuring access to alternative investments is properly regulated; the existing high level of investor protection on collective investment schemes; the inappropriateness of selling unregulated collective investment schemes to retail investors without advice; the ability to give retail investors indirect access to hedge funds; the need for a level playing field between all products; and the value of a UK taxation regime which encourages product providers to domicile funds onshore.

Julie Patterson, Director of Regulation, Operation and Taxation of the IMA commented,

�  Investment strategies are changing and the FSA has shown a welcome recognition of this.  New investment techniques are superseding many older-style financial products and it is right that ordinary investors should have access to them with suitable safeguards.  This requires a renewed focus on a disclosure regime covering all retail products which ensures that investors have risks properly explained.  And, while we do not think it appropriate for highly sophisticated products like hedge funds to be marketed directly to the public, other routes, providing diversification of risk, should be explored.�

A copy of IMA�s response is attached here.

-Ends-

For further information please contact:
Mona Patel, Head of Communications, IMA, 020 7831 0898

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