Press Release

IMA CALLS FOR MORE LEVEL PLAYING FIELD BETWEEN SAVINGS PRODUCTS

19 July 2007

Responding to the European Commission's "Green Paper on Retail Financial Services in the Single Market" the Investment Management Association (IMA) has urged the Commission to create a more level playing field at EU level between different savings products in terms of information to be provided to investors.  In addition, against the background of an increasingly ageing population IMA has called on the Commission to create a more open, competitive and effective market for savings products.   

As the number and type of investment products available to investors increases, IMA has welcomed the Commission's commitment to removing the barriers to pan-European investment fund business while warning that this is only a first step towards a level playing field.

The investment funds market is a highly regulated and transparent one and while we do not advocate a reduction in disclosure requirements for funds, we believe disclosure requirements for products which compete in the same market as funds need to be similar.  In particular, investors need clear information about costs and charges. 

Sheila Nicoll, Deputy Chief Executive of the Investment Management Association, said:

"We are proud of the fact that investment funds offer investors a transparent and well regulated savings option but we do not want to find ourselves competing with one arm behind our back.  It is very welcome that the Commission is turning its attention to closing the gap between funds and other less transparent savings products where the standards need to be brought up closer to those applicable to funds".

IMA's response to the Green Paper can be found here.