The introduction of Ucits IV could see hundreds of job losses in the UK asset management industry.
Among the changes in Ucits IV from July 1, 2011 is the introduction of a master/feeder fund structure. It allows providers to have a Luxemburg master fund and a UK feeder, which is a fund holding a single asset as units within the master.
Martin Currie head of product development Toby Hogbin says providers who do not view the UK as their primary market may merge their UK and European ranges on the back of the change.
He says: “If that happens, it is likely to affect the number of back-office and compliance members at those firms. They will not need large accounting teams, given they are holding one asset which is units in another collective, making pricing straightforward.
“If it is a Ucits scheme being run by the compliance team in Luxemburg, you will need nothing more than a man and a dog UK operation.”
Schroders head of fund regulatory strategy Simon Vernon says: “If providers do consolidate their ranges, then there are decisions on back office and depositories that need to be made. For us, it is unlikely we will merge our range as the UK offering is so different from the Luxemburg range.”