The AITC intends to change its name to reflect the growth of the offshore closed ended funds industr...
The AITC intends to change its name to reflect the growth of the offshore closed ended funds industry and plans to revamp its membership fee structure later this year.
While the body has yet to finalise its new name, it is likely it will drop the word 'trust' to become the Association of Investment Companies (AIC). The change is scheduled to take place at the start of October.
Daniel Godfrey, director-general of the AITC, said in recent years growth in the UK-listed investment company sector has come largely from offshore-domiciled investment companies, which are not necessarily investment trusts. As such, a new name would help encourage those companies to take out membership.
"Our name was not helping us to attract offshore companies or Aim listed firms," he explained.
"Asking them to join the Association of Investment Trust Companies, when they are not investment trusts, has led some to wonder whether they would be treated as second class citizens."
In terms of membership fees, from next year the organisation will apply a subscription rate of £100 per £1m, which will be calculated as a proportion of shareholders' funds on 31 March 2006, rather than gross assets as is currently the case.
Godfrey said for UK members a cap of £500m of shareholders' funds will be introduced meaning the maximum subscription would be £50,000 rather than today's maximum of £85,000. For offshore members it is being capped at £25,000.
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The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.