The Investment Management Association (IMA) has come out in support of the protected cell regime for Oeics, which ring-fences sub-funds.
The UK government’s introduction of the Open-Ended Investment Companies (Amendment) Regulations 2011 prevents sub-funds from drawing on the assets the of a sub-fund within the same umbrella fund.
Julie Patterson, director of authorised funds at the IMA, says: “The risk of a sub-fund ending up with more liabilities than assets is miniscule, but the new PCR [protected cell regime 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.”
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