Friday May 13 2016
News Source: Global Exchanges
Focus: Holidays and Opening Hours and suspensions
Type: General
On 12 May 2016, the European Fund and Asset Management Association (EFAMA) published a memo concerning the implementation of IFRS Phase 1. The memo covers investments in collective investment vehicles (CIV) in contractual, trust, or corporate form (simply referred as funds) from corporate and institutional investors acting on their own account (e.g. banks, life insurers, industry companies, etc.) and the accounting treatment of such investments under the upcoming IRFS 9 rules.
The European Fund and Asset Management Association feel that although IFRS 9 contains many positive evolutions, many of our members have been warned by their client investors that IFRS 9 would change their attitude towards investing in funds. Effectively, IFRS 9 would breach the overarching principle that the regulation should not create any distortion between direct holdings or investments through a fund vehicle.
EFAMA believe that IFRS 9, as it stands today, would disadvantage fund investors by not allowing them with any option with regards to the accounting methodology used. This comparative disadvantage for investment funds adversely affects the economic efficiency and should be avoided.
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