View more on these topics

Fund managers will need over £80,000 in reserves

Capital reserve requirements for fund managers will be significantly

enhanced under the latest amendments to the European Union&#39s Ucits

directive.

Although the FSA is consulting on the implementation of the directive, the

new levels will take effect from February 2007.

The directive requires all UK Oeic and unit trust managers to hold

£81,237 or e125,000 initially and then an additional 0.02 per cent of

the value of the manager&#39s portfolio. This is a noticeable increase from

the minimum of £5,000fund managers must currently hold.

The FSA is also consulting on other amendments, including the capital

reserves and changes to investment perspectives, which were agreed by

member states in January last year. The legislation behind the amendments

must be in place by November 2003.

In other European countries, capital reserves can come half in the form of

bank guarantees but the FSA will not allow this unless individual firms

petition to do so.

The changes are targeted at firms currently offering or have aspirations to

market their products in Europe but will affect all UK fund managers by

2007. Firms wanting to break into Europe earlier will have to have the

reserves in place by 2004.

Liontrust marketing director Jonathan Harbottle says: “You&#39ve got to pay to

play. An increase of £5,000 to £81,000, while substantial, is

still within the realm of one&#39s resources.”

Recommended

Product matters

With the end of the tax year fast approaching, this is the time wheninvestment houses pull out all the stops to bring exciting new funds to thetable. This season will be no exception but what we will see is a biastowards the more cautious end of the market.The balance between equities and bonds is essential […]

CBE for Myners and knighthood for HBOS&#39s Burt

Former Gartmore chairman Paul Myners, who led the Treasury-commissionedreview into institutional investment, was made a Commander of the BritishEmpire in the New Year&#39s Honours list for services to the financial sector.In addition to a number of recommendations aimed at cleaning upinstitutional investment, Myners recommended the creation of a similarreview for the retail sector, which spawned […]

Britannic enters purchased life market

Britannic Retirement Solutions has entered the purchased life annuity market.Purchased life annuities are not pension annuities, so they can be taken out by anyone who needs an income for life. However, they are usually of interest to people who are approaching retirement or who have already retired. They may, for example, be used to fund […]

Kylie sought after

2003 sees the inauguration of The Diary&#39s Hold the Front Page Award for themost informative and interesting press release.Insurer Select & Protect takes the trophy with news that its painstakingsurvey of 2,400 agents reveals that Kylie is the person most mortgageadvisers would like to sell a mortgage to.Second place has to go to Scottish Friendly […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com