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IMA wants investment trusts excluded from EU fund rules

The Investment Management Association has called for the exclusion of closed-ended investment companies from the new fund manager regulations proposed by the European Commission.

A letter from IMA chief executive Richard Saunders to EU deputy director general David Wright, seen by Money Marketing, says it is impossible to see how UK investment trust companies can fit within the framework of the directive as they have no depository because the responsibility for oversight sits with the board of the company.

He says they are not regul-ated entities as they are incorporated under UK company law and fall under the transparency and prospectus directives.

The letter says the best solution is to exclude closed-ended investment companies on a regulated market in the same vein as it proposes for national private placement regimes, with the passport given to these vehicles under the prospectus directive remaining unaffected.

The IMA is also calling for wider powers of delegation and excluding non-Ucits retail funds from the directive.

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