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Press Release

For Immediate Release: Friday 21 November 2003


The IMA today announced the launch of its first Statement of Recommended Practice (SORP) for authorised funds. The SORP sets out recommendations for the preparation of financial statements of all authorised funds and will be implemented from 1 December 2003.

As proposed, the existing combined SORP has been merged and particular changes have been made to the disclosure of derivatives, the presentation of the portfolio statement and accounting for securities issued at a premium.

Julie Patterson, Director of Regulation, Operations and Tax commented:

“ We are pleased to have produced in short order a combined and updated SORP. Its use will ensure that all investors and financial advisers will have access to sound and consistently presented information.

Thanks are due to the members of the SORP Working Party, to all those who provided comments on the Exposure Draft and to the Accounting Standards Board for its support.”

The IMA will regularly review the SORP, particularly following the adoption of the International Financial Reporting Standards (IFRS)*, which will come into effect on 1 January 2005.

IMA’s Statement of Recommended Practice for Financial Statements of Authorised Funds is attached


For further information please contact:

Julie Patterson, Director of Regulation, Operation and Tax, IMA, 020 7831 0898
Helen Stephenson, Communications Officer, IMA, 020 7831 0898
Davood Eslami, Secretary to the SORP Working Party, IMA, 020 7831 0898

Notes to editors:

1. * With effect from 1 January 2005, the EU regulations require listed companies to prepare their consolidated statements in accordance with adopted IFRS. The DTI announced in June 2003 that any company subject to the Companies Act reporting regime can also adopt the provisions of IFRS should they wish. This does not include AUTS or OEICs because although OEICs are corporate in nature, they are not bound by the Companies Act reporting regime. Consequently, as the rules stand, AUTs and OEICs cannot adopt IFRS.

It is expected that in due course the requirements will change and that AUTs and OEICs will have to report in accordance with IFRS, at which point the contents of the SORP will be reviewed and amended accordingly. However, there is currently no definitive timetable in place as to when these changes will take place. 

2. IMA took over the role of SORP making body from the Financial Services Authority in November 2002.

3. SORPs recommend accounting practice for financial statements and cannot override accounting standards. However, where choices are available they can recommend particular accounting treatments with the aim of narrowing differences between comparable entities. This SORP will supersede the two existing SORPs for authorised unit trusts and OEICs.

4. Hard copies of the IMA’s SORP can be obtained by contacting Selina Staines at the IMA on 020 7831 0898.

5. The Investment Management Association (IMA) is the trade body for the UK investment management industry. It was formed in February 2002 as a result of a merger between the Fund Managers’ Association (FMA) and the Association of Unit Trusts and Investment Funds (AUTIF). IMA’s members provide investment management services to institutions (for example, life assurance companies, pension funds, and individual companies) and to private investors, through individual fund management agreements and pooled products such as authorised investment funds. Between them, IMA’s members manage over £2,000 billion worth of assets. More information can be found on

65 Kingsway London WC2B 6TD 
Tel: +44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975 
Investment Management Association is a company limited by guarantee registered in England and Wales Registered number 4343737.  Registered office as above.

Investment management association