The UK Treasury has taken a step forward in its bid to maintain the country’s position as a competitive funds domicile by launching a consultation on the introduction of authorised tax-transparent funds. If successful it will allow the UK to leverage its ability to host Master funds whilst allowing European investors to benefit from UK-based feeder funds. Under UCITS IV, “master-feeder” structures help improve the efficiency of European funds. Feeder funds in different domiciles can invest in the same “Master” fund, thereby allowing a single portfolio of assets to be offered in multiple jurisdictions for different types of investors. Commenting on the Treasury’s announcement, Julia Patterson, Director of Authorised Funds and Tax at the Investment Management Association (IMA) said: “Today’s announcement is a positive start to the year for the UK fund industry. We look forward to engaging with the Treasury as part of the consultation and ensuring that the new vehicle works for investors.”