The UK's Investment Management Association (IMA) has called on the European Commission to quicken th...
The UK's Investment Management Association (IMA) has called on the European Commission to quicken the pace of reforms recommended in the Green Paper published in July on the future of the asset management industry.
It said a number of measures need to be implemented in the short term if there is to be a single market in investment funds in Europe. This followed comments from European Commissioner Charlie McCreevy that "the single market framework for investment funds is in need of considerable improvement. To be honest, it's a bit of an old banger."
Proposals in the Green Paper, called Enhancing the EU Framework for Investment Funds, are designed to lead to more consistent regulation of funds across Europe. Interested parties have until 15 November to respond.
The IMA highlighted four areas where it has called for more immediate action than is proposed in the Green Paper.
Sheila Nicoll, deputy chief executive of the IMA, said there was a need for a simplified funds prospectus that is harmonised across Europe. She added: "The problem is that the prospectus is neither simple nor subject to the same requirements in all countries."
The Green Paper proposed that the Committee of European Securities Regulators, which consists of national regulators, continues to try to implement a consistent approach to the registration of funds. But the IMA has called on the Commission to intervene to force a change.
While the Green Paper identified enabling the cross-border merger of funds as a long-term objective, the IMA wants it to become a short-term reality.
Another area where the IMA has called for new legislation in the short term is the pooling of assets from funds in different countries so they could be managed in one central pot. It argued this would also reduce costs and charges for investors.
IMA key proposals
Simplified fund prospectus harmonised across Europe.
European Commission to introduce consistent approach to fund registration.
Make cross-border fund mergers an immediate objective.
Make it easier for groups to pool fund assets.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till