IMA welcomes PRC safeguard
The new legislation introduced for open-ended investment companies (OEICs) has enhanced Britain's position as a key domicile for funds, it is claimed.
- (1888PressRelease) December 23, 2011 - OEICs will now benefit from a protected cell regime (PCR), ensuring that the assets of each sub-fund are ring-fenced from each other, the Investment Management Association (IMA) explains.
One sub-fund will therefore no longer be able to draw on the assets of another to cover its liabilities.
IMA Director of Authorised Funds Julie Patterson explains the risk of such a situation occurring is "miniscule", but the PCR provides assurances that this won't happen.
"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," she added.
However, the IMA recently expressed concern that the draft Financial Services Bill does not go far enough, feeling it should do more to encourage competitiveness in the sector.
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