Govt proposals on offshore funds fail to reassure industry, says Aima

Date: Thursday, July 17, 2008
Author: Hannah Stodell, Money Marketing.co.uk

Aima supports HM Treasury’s proposals to simplify the offshore funds regime and provide greater certainty to UK investors and funds.

However, the organisation believes that the proposed changes do not reduce the administrative complexity of the existing regime and could increase costs and be an additional burden on the investment management industry.

Aima endorses the Treasury’s inclusion of accumulation funds, the abolition of the 5 per cent investment test and the introduction of flexibility to allow three breaches in ten years. In its submission on July 11, the association calls for greater clarity on the ongoing development of funds of alternative investment funds.

Aima deputy chief executive Andrew Baker comments: “We regard HM Treasury’s proposals for a new offshore funds regime as a step towards achieving a more efficient regime, but feel the changes fall short of the objective of creating certainty for investors and funds.”