Julie Patterson, Director of Authorised Funds and Tax at the Investment Management Association(IMA) the UK is open for business as a domicile for both funds and management companies, when speaking at UCITS conference in London on how regulation should develop to protect the UCITS brand and investors.
Significant changes to the UKs fund tax regime have put the UK back on the list of key fund domiciles for UCITS funds, says Patterson. The UK is already a major domicile for alternative investment funds, with around 2,000 such vehicles based here. For the UK to be able to offer competitive UCITS master-feeder structures, there needs to be a handful of further changes. We are pleased, therefore, that the Government has committed to the introduction of “tax-transparent” funds in 2012 and to making certain technical changes to accommodate master-feeders.
The UCITS IV Directive includes a number of measures designed to improve the efficiency of European funds, allowing for the first time “master-feeder” structures to be marketed across Europe as an alternative to merging fund ranges.
“Feeder” funds in different domiciles will invest in the same “master” fund, thus allowing a single portfolio of assets to be offered in multiple jurisdictions and for different types of investors.
The new UCITS management company passport will allow UK management companies to manage non-UK UCITS, says Patterson. The Finance Bill ensures that UK management companies will be able to manage non-UK UCITS without adverse UK tax consequences for the funds or their investors. The steps being taken now to further improve the competitiveness of the UK fund and asset management industry are very welcome.
(LB)