The Investment Management Association has welcomed new rules to allow fund managers to distribute non-Ucits funds to professional investors in EU member states.

The Investment Management Association has welcomed new rules to allow fund managers to distribute non-Ucits funds to professional investors in EU member states.

The association was responding to the European Commission's draft directive for alternative investment fund managers (AIFMs).

Currently, cross-border fund distribution in EU countries is limited only to Ucits funds.

Jarkko Syyrilä, director of international relations at the IMA, says: "The IMA has long been calling for firms to be able to distribute hedge funds, property funds, and other non-harmonised funds cross-border to institutional investors; the proposed Directive incorporates this. If the directive comes to fruition, EU authorised AIFMs will be able to distribute both EU and non-EU domiciled funds to professional investors in any Member State. These changes to the rules will offer more choice for Europe's professional investors and further strengthen Europe's fund management industry.

'However, waiting another three years until third country funds can be distributed in Europe is too long. European investment funds are marketed around the globe with remarkable success. We are fully convinced that open markets will be of benefit to Europe. IMA will be engaging with all the relevant authorities to discuss the draft directive in further detail."