Wednesday 21 December 2011
IMA: NEW RULES ENHANCE THE UK’S POSITION AS A KEY FUND DOMICILE
The Investment Management Association (IMA) welcomes today’s introduction of a protected cell regime (PCR) for UK open-ended investment companies (OEICs). The legislation ensures that the assets of each sub-fund in an OEIC umbrella fund are ring-fenced from the other sub-funds. This will mean that one sub-fund cannot draw upon the assets of another to cover its liabilities.
Julie Patterson, Director of Authorised Funds at the IMA said:
“The risk of a sub-fund ending up with more liabilities than assets is miniscule, but the new PCR removes the potential for cross liability between sub-funds. The PCR is therefore a further welcome step to improve investor confidence and to enhance the competitiveness of the UK as a key fund domicile.
“This, together with the launch next year of tax-transparent funds, cements the UK’s position as a fund domicile of choice.”
- Ends -
Notes to Editors
The legislation can be found here.
For further information, please contact:
Mona Patel, Head of Communications, IMA, 020 7831 0898 or 07834 089332
Christina Bridge, Press Assistant, 020 7831 0898
About the Investment Management Association
The IMA is the trade body for the UK's £4 trillion asset management industry. The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs. Our purpose is to support and promote a commercially successful and growing UK investment management industry as we seek to improve the financial outcomes for customers - savers and investors.