IMA WELCOMES UCITS IV PROPOSALS

The Investment Management Association (IMA) welcomes the European Commission's (EC) proposals today for an improved legislative framework for UCITS funds (Undertakings for Collective Investment in Transferable Securities) and hopes that the  proposals can be implemented without delay to allow the asset management industry to benefit from an efficient, single European market.

Commenting, Jarkko Syyrila, Director of International Relations at IMA said:

"UCITS has been a great European success story for the industry and investors and with increasing global competition these improvements are welcome.  The provisions to improve investor protection, and reduce costs and bureaucracy will benefit the industry and investors alike.

We welcome the mandate given to CESR on the issue of a management company passport; we are fully confident that a solution can be found for a management company passport and will continue to work together with the authorities on this.

We now call on the European institutions to work together to ensure that all these crucial improvements to the UCITS framework can be adopted by the 2009 European elections."

-ENDS-

Notes to Editors

1. UCITS (Undertakings for Collective Investment in Transferable Securities) are investment funds established and authorised in conformity with the requirements of Directive 85/611/EEC. Once authorised, a UCITS fund can be distributed to investors across the EU upon notification to the corresponding national authorities. The Directive has been key to the successful development of the European market for investment funds. Today, UCITS funds manage assets amounting to € 6400 billion (i.e. about half of the EU GDP).
   
   
2. The UCITS Directive lays down common requirements for the organisation, management and oversight of UCITS funds. The Directive defines a list of eligible assets in which a UCITS fund can invest. It also imposes rules relating to the diversification and liquidity of the fund's portfolio. Thanks to these strict requirements, UCITS funds enjoy world-wide the reputation of a well supervised financial product. They have also protected UCITS funds against the severe effects of the recent financial turmoil.
   
   More information is available at: http://ec.europa.eu/internal_market/investment/legal_texts/index_en.htm
   
   
3. The IMA is the trade body for the UK's £3,100 billion 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. Its role is to represent the industry and promote high standards.
   
   More information is available here

For further information, please contact:
Noreen Shah, Press Officer, IMA, 020 7831 0898

Out of hours:
Mona Patel, Head of Communications, IMA, 07834 089 332