The IMA says the FSA should allow hedged share classes for open ended funds to ensure London does not lose out to financial centres such as Dublin and Luxembourg.
The call comes in the association’s response to the FSA’s Quarterly Consultation (No. 10) published in October as CP 06/18. According to that document, the FSA proposes amendments to the COLL (collective investments) sourcebook rules, which would result in authorised funds and relevant managers being able to use currency hedging techniques. COLL rules currently allow the issue of so-called currency class units, which are in another currency than the base currency of the scheme. This is to allow sales across borders. The challenge is risk associated with currency fluctuations – hence the...
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