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Press Release

New rules enhance the UK's position as a key fund domicile

21 December 2011

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.”

http://www.legislation.gov.uk/uksi/2011/3049/contents/made



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Investment Management Association

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