The IMA has revealed that it has accepted a total of 71 out of 180 requests to add funds into the sectors. A further 89 are pending, while 20 funds were deemed to be not eligible for inclusion. The IMA is set to launch a call for a second tranche of admissions in the near future, with a third set for the final quarter of 2010.
The IMA will flag those funds within the sector which are offshore.
In order for an offshore fund to be placed in the IMA sectors it must reach a number of specific criteria, such as having distributor status or the new reporting fund rules once introduced; be a Ucits vehicle registered for sale in the UK; be appropriate for UK domiciled retail clients; while the currency of the chosen share class must be entirely unambiguous to the investor.
IMA director of markets Jane Lowe says: “The Ucits passport is intended to make cross-border funds available to investors in all European countries. The inclusion of offshore funds into IMA sectors is a natural evolution for our classification system and takes account of the intended flexibility for distributing European funds. The change should make a wider choice of funds available to investors and allow offshore fund providers to market their funds on an equal footing to UK domiciled funds.”