Govt consults on tax-transparent CISs

The Undertakings for Collective Investments in Transferable Securities IV Directive (UCITS IV) of July 2011 created the ability for UCITS funds to establish master-feeder arrangements. However, the Treasury said, in order to make these attractive to investors, the master fund must be tax-transparent, which is not possible under current legislation for UK-domiciled funds. In a consultation launched yesterday, the Treasury called for industry views on the costs and benefits of allowing tax-transparent UK-domiciled collective invest CISs. It asked how popular the vehicles are likely t...