07 December 2006

IMA welcomes FSA move to introduce Hedge Share Classes for Collective Investment Schemes

IMA responded to the FSA consultation which proposes to introduce hedged share classes for Collective Investment Schemes (CP06/18). 'The move will offer a truly hedged share class as an alternative to investing in the base currency and will bring UK UCITS into line with their European counterparts', Richard Saunders, Chief Executive of the IMA, commented.

The Association first raised the issue of introducing a hedged share class for funds in June this year as a result of concerns raised by IMA members. The current inability to offer such share classes puts the UK funds market at a competitive disadvantage as hedging techniques are already permitted in other jurisdictions including Dublin and Luxembourg. The lack of provision for such classes in the UK could result in managers opting to launch their funds offshore or force them to launch alternative products at considerable expense.

Full response

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