TISA report on progress towards PAIF distribution by wraps and platforms
A TISA project to examine ways in which Property Authorised Investment Funds (PAIFs) could be offered by wraps and platforms has published an initial paper of its findings.
PAIFs, as structures, offer tax advantages for many consumers, however the income “streaming” they utilise in their operation pose administration challenges for some wraps, platforms, ISA and SIPP providers.
TISA established a PAIF Technical Committee made up of representatives of the property fund management community, investment administrators, pension providers, life offices, wrap and platform providers and distributors together with observers from colleague trade bodies to consider possible developments to systems and procedures to support the PAIF architecture.
The Committee’s paper, which has the support of the Association of Real Estate Funds (AREF) and the Investment Management Association (IMA), sets out the intended direction of travel and is addressed to all those interested in property fund management, wraps and platforms, ISA and SIPP provision, and distribution more generally in the UK.
The paper also identifies the intention of the “top ten” property fund providers collectively to move towards offering PAIF structures for existing and new funds by Q4 2011.
An interim “feeder fund” solution has been devised for those unable to develop in time in recognition of the already crowded development schedules in advance of 2012.
Malcolm Small, Director of Policy at TISA, said:
“PAIFs offer tax advantages in their structure for many consumers, so it’s important that the retail financial services industry in the UK is able to offer them. The move towards offering PAIFs by the fund management community offers some certainty of the direction of travel and the timescale, where there was little before. Ideally, I’d like to see market participants able to fully support PAIFs by the end of the year, but the feeder fund solution offers an interim solution for those who cannot do so in that time. To some extent, this will be a matter of competitive advantage.
“I would encourage the widest possible representation on the TISA Technical Committee addressing this issue. It will act as a pan-industry clearing house which will add value by sharing implementation challenges and experience, so that market participants are not repeating mistakes others have already made. This will help deliver better consumer outcomes, faster.
“Our thanks are due to AREF, IMA and all the other project members who have helped get us to this stage.”
Ends
For further information, please contact:
Malcolm Small, Director of Policy, Mobile: 07989 500771 Email:malcolm.small@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 3178 7238, Mobile: 07889 903786
Email: steve.radford@cauldron-consulting.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)
TISA is the premier industry funded body in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst encouraging more people to save for their financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership comprising over 120 member firms involved in the supply or distribution of products. TISA’s remit extends across the broad spectrum of government sponsored savings and investment vehicles.