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Press Release

For immediate release: 2 July 2007


Responding to the European Commission's call for evidence on a private placement regime, the Investment Management Association has strongly urged the Commission to break down the barriers to the cross-border marketing of investment funds to professional investors who do not need the same protections as retail investors.  The lack of a pan-European regime is a missed opportunity for such investors and puts investment funds at a competitive disadvantage as compared to other financial services products.

This current situation deters UK investment managers from marketing to professional investors cross border due to legal uncertainty, lack of clarity and the prohibitive cost of checking rules in different Member States.  In some countries the rules are overly restrictive while in others the lack of clarity is an obstacle. 

Member States have already accepted in MiFID that the imposition of rules designed to protect retail investors is not necessary in this market. 

Jarkko Syyrilä, Head of International Affairs of the Investment Management Association, said:

" The current rules represent a single market failure by denying economic opportunity to professional investors who are unable to benefit from diversification through UK investment funds.  IMA is seeking an exemption from rules intended to protect retail investors so that investment managers can market their funds to professional investors who do not need that level of protection.  However, it is important that any action in this area does not operate to the detriment of existing private placement rules where they currently function effectively."     

IMA's response to the call for evidence can be found here.

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For further information please contact:
Mona Patel, Head of Communications, 020 7831 0898/ 07834 089332

Investment management association