IMA has welcomed Treasury’s plans to introduce a protected cell regime for OEICs. It thinks two parts of the proposals need further thought:  

  • firms are concerned at the plans for compulsory conversion for existing OEICs within one year: IMA suggests firms should move only when all non-compliant existing agreements have expired or are renegotiated;  
  • FSA’s suggested definition of “Foreign Law Contract” is too wide and would catch contracts that will not practically be at risk of a foreign court’s action, like the ISDA Master.