IMA calls upon EU and US Treasury to address derivative discrepancies

The IMA has called upon the European Commission and the US Treasury to abandon proposals which will force fund managers to comply with derivative rulings from different jurisdictions depending on their investor base.

The body has joined forces with seven other trade associations to write to Michael Barnier at the European Commission, and Tim Geithner, the US Treasury Secretary, requesting they take action on proposed derivatives trading rules when regulators implement G20 commitments. Extra-territorial proposals state managers must abide by the derivatives rulings for each country their investors are from. For example, if a US client is invested into a UK Oeic, the manager must comply with derivative rulings for both jurisdictions. Jane Lowe, director of markets at the IMA, said: "Investment manag...