The FSA is not looking to pursue the development of limited redemption funds for the UK market, writ...
The FSA is not looking to pursue the development of limited redemption funds for the UK market, writes Robert Stock.
However, the authority has confirmed it will go ahead with plans to allow groups to cap the assets going into funds, through the development of limited issue funds. Limited redemption funds would have given fund management companies the ability to control flows of assets out of portfolios.
A spokesman for the FSA, said: "We are going ahead on the limited issue side, but not on the limited redemption."
Details on limited issue funds will be included in the FSA Sourcebook on Collective Investment Schemes, due to be published later this month.
The updated sourcebook, which is principally a restating of the current CIS regime and a description of the authorisation procedure, is expected to also confirm that derivatives, futures and options, funds of funds, cash and property funds will be allowed to be included as sub-funds in an Oeic umbrella fund.
The FSA said, the question of whether the single pricing of unit trusts, which is currently optional, will be made the industry standard, is one that it will seek to answer after N2, as is the possibility of allowing separate unit classes on unit trusts.
N2 is the date on which the FSA takes its full powers. This is scheduled for summer 2001.
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