Selling UK-domiciled funds to the rest of Europe moved one step closer last week after the French in...
Selling UK-domiciled funds to the rest of Europe moved one step closer last week after the French introduced draft proposals on a master feeder structure to the European parliament.
Last week, the European parliament, which is looking at the Ucits directives, tabled the draft on a structure that would allow a master fund to be set up in one country. Groups could then set up funds in individual countries throughout Europe, which would invest 100% in that master fund.
Effectively this would be the same as having a UK fund that can be sold and marketed through Europe. At the moment a group would have to have separate ranges of funds if it wanted to sell them across Europe.
Sheila Nicoll, director of legal and fiscal affairs at Autif, said: "Arguably this was always supposed to be the goal of the Ucits directive but it has not happened. Individual countries have argued against this because of tax benefit differences and the regulatory difficulties."
It is a controversial topic and as such the subject has been put onto the second portion of Ucits legislation. Even if it does pass through the European parliament it would have to gain approval of the individual member countries.
The first set of Ucits legislation is expected to be finalised in the first quarter of 2000, followed by an 18 month implementation period. The second portion of legislation would follow years behind this.
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