Speaking at the Euromoney UCITS 2011 conference on how regulation should develop to protect the UCITS brand and investors, Julie Patterson, Director of Authorised Funds and Tax at the IMA (Investment Management Association), said the UK is open for business as a domicile for both funds and management companies.
Commenting on UCITS and Alternative Investment Funds (AIFs), Julie Patterson said:
"Significant changes to the UK's fund tax regime have put the UK back on the list of key fund domiciles for UCITS funds. 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. **
"Also, this year's Finance Bill includes provisions for no SDRT "Schedule 19" charge for funds investing in other funds that are not materially invested in UK equities. This is a step in the right direction, but the IMA continues to call for the abolition of the SDRT Schedule 19 regime.
Turning to the topic of management companies, Julie Patterson said:
"The new UCITS management company passport will allow UK management companies to manage non-UK UCITS. 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.
Concluding, Julie Patterson said:
"The UK is a leading global centre for investment management, including for UCITS and alternative investment funds. We share the Government's objective to ensure it remains so.
"The steps being taken now to further improve the competitiveness of the UK fund and asset management industry are very welcome."
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