For immediate release: Tuesday 6 December 2005

IMA RESPONDS TO 2005 PRE-BUDGET REPORT

Following yesterday’s Pre-Budget Report IMA welcomes the publication of a consultation from the Treasury which looks to amend the Financial Services and Markets Act (FSMA) in order to relax the rules which require the FSA to consult before issuing rules or guidance. This follows a review of the FSMA rules in which both the FSA and the financial services industry drew attention to the large amount of unnecessary consultation undertaken by the UK Regulator.

IMA also welcomes the announcement that the range of qualifying investments for ISAs will be extended to include all FSA authorised retail investment schemes and alternative financial arrangements such as Shari’a accounts.

Other points of interest include:

• The creation of a ten point action plan of reforms to wholesale and retail financial markets due to the burden of financial services regulation by introducing risk-based regulation and modernising the scope of FSA regulation
• The announcement that the REITS draft regulations will be published before the end of December
• A further consultation on CTFs looking at whether to have an additional payment at the age of seven

Richard Saunders, Chief Executive of the IMA commented:

“IMA welcomes the news that the Treasury has listened to the industry by seriously looking at the burden of regulation on the financial services market. We are also pleased that the draft regulations for real-estate investment trusts will be out before the end of the year and look forward to reading them with interest to see how open-ended funds will fit into this new regime.

Finally, the Government’s continued commitment to ISAs by extending the range of qualifying investments to include all FSA authorised retail investment schemes is encouraging in the light of the ISA review which is due to take place in 2006.”

-Ends-

For further information, please contact:
Helen Stephenson, Communications Officer, IMA, 020 7831 0898

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