Press Release

IMA calls for pragmatic solutions for supervision of cross-border fund management

Tuesday 26 August 2008

Responding to the Committee of European Securities Regulators' (CESR) call for evidence on the practicalities of introducing a management company passport, the Investment Management Association (IMA) warns against imposing dual control of the management company's activities by both its home state supervisor and the supervisor of the fund's Member State. This would be too burdensome and also take away the cost benefits of having such a passport.

IMA believes that CESR needs to analyse the division of duties between the management company supervisor and the fund supervisor, and determine what each needs in order to conduct its duties effectively. The cornerstone of a well-functioning management company passport will be a clear division of duties between the two supervisors concerned and a mutual trust between them.

Commenting, Jarkko Syyrilä, Director of International Relations at IMA said:

"IMA believes that a management company passport is essential in order to enhance the efficiency of the European asset management industry. Introduction of a management company passport will allow a fund manager to carry on all activities for which it has been authorised by the home country in another Member State, without having to apply for authorisation again. CESR's work to solve the supervisory issues on the management company passport will be crucial for the whole set of UCITS IV proposals to progress."

A copy of IMA's response to CESR's call for evidence can be viewed here