Distribution rules to hinder European fofs

European-based funds of funds seeking access to the UK market could be hampered due to rules governi...

European-based funds of funds seeking access to the UK market could be hampered due to rules governing distributor status. Fearing investors may be disadvantaged, Dick Saunders, chairman of the IMA, has written to Gordon Brown ahead of the Budget to seek clarification. The issue relates to a change made in relation to fund structures with more than two tiers. Saunders said that if an offshore fund of funds invests more than 5% of its assets in another offshore product and that fund does likewise, then neither can qualify for distributor status. Previously, managers of such funds were a...