The IMA has warned that dual supervision of management companies by both its home and member states is excessively burdensome and removes the cost benefits of having a management company passport.
This warning comes in response to the Committee of European Securities Regulators’ call for evidence on the practicalities of introducing a management company passport.
The IMA says that CESR needs to analyse the division of duties between the supervisors of the management company and the fund to fully determine each others needs.
IMA director of international relations Jarkko Syyrilä says: “IMA believes that a management company passport is essential in order to enhance the efficiency of the European asset management industry. Introduction of a management company passport will allow a fund manager to carry on all activities for which it has been authorised by the home country in another member state, without having to apply for authorisation again. CESR’s work to solve the supervisory issues on the management company passport will be crucial for the whole set of Ucits IV proposals to progress.”