Making the announcement at a speech given to PricewaterhouseCoopers last night, financial secretary to the treasury Mark Hoban said that the move would help the UK preserve its competitiveness once master-feeder structures are able to be established across Europe.
Hoban added that the UK was having to play ‘catch up’ in light of other EU member states having already established similar vehicles.
Master-feeder structures will permit feeder funds in different domiciles to be invested in the same master fund, presenting an alternative to merging fund ranges and allowing a single portfolio of assets to be offered for different types of investors and in multiple jurisdictions.
The Investment Management Association had in February called for a tax-transparent contractual fund regime for the UK in anticipation of master-feeder structures, while then-Chancellor Alistair Darling said in the Budget in March that the Labour government would consult on creating such a fund.
“The new regime will allow the UK to capitalise on the opportunities that the Ucits IV Directive brings, particularly in relation to the master-feeder fund structure across Europe,” said Julie Patterson, IMA director of authorised funds and tax, responding to Hoban’s announcement.
“It will allow master funds to be based here, in Europe’s pre-eminent asset management centre. And investors across Europe will benefit from UK-based feeder funds,” Patterson added.
