HM Treasury News Release
135/97                                       4 November 1997
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  HELEN LIDDELL ANNOUNCES WIDER CHOICE FOR INVESTORS


Plans to allow an additional range of open ended investment
companies (oeics), giving a wider choice for investors were
announced today by the Economic Secretary, Helen Liddell.

Speaking to the Association of Unit Trusts and Investment
Funds, Mrs Liddell said that she supported allowing oeics to
establish cash funds and funds of funds and was currently
considering the best way to introduce them.

The Minister said:

     "The Government is very well aware of its part in
     ensuring the UK financial services industry continues to
     be successful. 

     "We are also aware that there is a need to develop
     further and adapt to meet the changing needs of the
     marketplace.

     "These new oeics will have a useful role to play for
     retail investors."

The ability for oeics to take advantage of these powers will
allow the industry to build on the success of the oeic as a UK
investment vehicle and provide a greater choice for investors.



NOTES TO EDITORS

1.   Treasury regulations permitting the formation of oeics
investing in transferable securities (The Open Ended
Investment Companies (Investment Companies with Variable
Capital) Regulations 1996, SI 1996 No 2827) came into effect
on 6 January 1997.

2.   Four oeics, which between them have 50 sub funds, have
now been authorised by the Financial Services Authority
(formerly known as the Securities and Investments Board).


3.   The Treasury issued a consultation document in December
1996 on the next generation of oeics (Treasury News Release
173/96). Following those consultations, the Government has
decided that it wishes to introduce powers to allow oeics to
establish cash funds and funds of funds as soon as possible.
The Government is considering the best way to achieve this.

4.   Media copies of Helen Liddell's speech to the Association
of Unit Trusts and Investment Funds are available from the
Treasury Press Office on 0171 270 5185.

5.   Non-media copies of the speech are available from the
Treasury Public Enquiry Unit on 0171 270 4558.

6.   If you have access to the Internet, you can find this
news release at http://www.hm-treasury.gov.uk. Other treasury
material can also be found at this address.