Treasury announces new corporate banking rules

The Treasury and the Financial Services Authority have set out their plans to comply with revised rules on managed funds set out in the European Union's (EU) Undertakings for Collective Investments in Transferable Securities (UCITS) IV Directive.

New regulations include the introduction of a management company passport, which will allow financial institutions to operate funds in different EU states from their own.

Cross-border administrative barriers will also be streamlined as part of the new framework, meaning companies can access markets in other countries much more easily.

For the first time, 'master-feeder' structures - which allow multiple feeder funds to invest in one master fund - are to be allowed, which the government hopes will create more cost-effective arrangements.

Investment Management Association director of authorised funds Julie Patterson welcomed the government's commitment to providing greater tax transparency and certainty as a result of the changes.

The UCITS IV rule modifications must be made into law by July 1st 2011.ADNFCR-2318-ID-800309306-ADNFCR