The European Fund and Asset Management Association (EFAMA) issued a report which outlines recent developments and sets a new agenda for the European investment management industry. The joint report by
EFAMA and PricewaterhouseCoopers states that despite significant progress in removing tax barriers to the marketing of funds across borders, tax discrimination in the EU continues to be a major obstacle to the creation of a single market for investment funds.
The report analyses the tax constraints and looks at progress in removing those constraints as well as identifies the remaining tax barriers to the effective operation of the EU single UCITS fund market place. It also makes suggestions for change by the European fund industry and the European Commission.
The report also questions whether countries such as the UK, Germany and Austria, in particular, but also Belgium and Denmark currently breach the EU Treaty by imposing burdensome administrative requirements based on local law on foreign based UCITS.
The cost of this local compliance can run into hundreds of thousands of euros and currently most fund managers choose to comply with these requirements but they could also challenge the legitimacy of these administrative hurdles.
Press release
Report
© EFAMA - European Fund and Asset Management Association
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