4 November 1997
HELEN LIDDELL ANNOUNCES WIDER CHOICE FOR INVESTORS
Plans to allow an additional range of open ended investment companies (oeics), giving a wider choice for investors were announced today by the Economic Secretary, Helen Liddell.
Speaking to the Association of Unit Trusts and Investment Funds, Mrs Liddell said that she supported allowing oeics to establish cash funds and funds of funds and was currently considering the best way to introduce them.
The Minister said:
"The Government is very well aware of its part in ensuring the UK financial services industry continues to be successful.
"We are also aware that there is a need to develop further and adapt to meet the changing needs of the marketplace.
"These new oeics will have a useful role to play for retail investors."
The ability for oeics to take advantage of these powers will allow the industry to build on the success of the oeic as a UK investment vehicle and provide a greater choice for investors.
NOTES TO EDITORS
- Treasury regulations permitting the formation of oeics investing in transferable securities (The Open Ended Investment Companies (Investment Companies with Variable Capital) Regulations 1996, SI 1996 No 2827) came into effect on 6 January 1997.
- Four oeics, which between them have 50 sub funds, have now been authorised by the Financial Services Authority (formerly known as the Securities and Investments Board).
- The Treasury issued a consultation document in December 1996 on the next generation of oeics (Treasury News Release 173/96). Following those consultations, the Government has decided that it wishes to introduce powers to allow oeics to establish cash funds and funds of funds as soon as possible. The Government is considering the best way to achieve this.
- Media copies of Helen Liddell's speech to the Association of Unit Trusts and Investment Funds are available from the Treasury Press Office on 0207 270 5185.
- Non-media copies of the speech are available from the Treasury Public Enquiry Unit on 0207 270 4558.