§ Mr. LoughtonTo ask the Chancellor of the Exchequer if he will announce the timetable for the introduction of legislation to enable cash and fund-of-fund open-ended investment companies to be launched in the UK domestic market; and when authorisation of cash and fund-of-fund open-ended investment companies will enable ISA providers to promote such companies as an alternative to authorised unit trust schemes. [79344]
§ Ms HewittThe Financial Services and Markets Bill will include a provision to make orders allowing the formation of a wide range of open-ended investment companies (oeics). The aim will be to create a single corporate code for all authorised oeics. The Financial Services Authority will then be able to authorise oeics with a broad range of investment objectives. These could include cash and fund-of-fund open-ended investment companies.
Existing cash and fund-of-fund authorised unit trusts are eligible for inclusion in ISAs. Changes to the tax regulations permitting cash and fund-of-fund open-ended investment companies to be offered as ISA products will be introduced once these are established in law and are authorised by the Financial Services Authority.