Chaotic global red tape hurts savings firms

Tim Wallace
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AN EXCESSIVELY complicated and fragmented series of overlapping regulations are damaging the investment industry and hitting savers’ returns, the Investment Management Association (IMA) warned yesterday.

The industry is becoming less efficient as governments fail to coordinate their regulations, and in some cases take a more protectionist stance, the IMA’s study claimed.

In particular it uncovered concerns over the extra-territorial nature on the US Foreign Account Tax Compliance Act, as well as the Alternative Investment Fund Managers Directive.

“Some new regulations will affect even those with only very indirect connections to countries where the rules originate,” the IMA said.

“In addition to operational complexity, such wide reaching change could hinder fair access to global markets and investment opportunities, reducing investor choice and returns.”