Isolation on mutual funds plan

IRELAND and Luxembourg have been isolated in their bid to prevent mutual funds being managed centrally amid fears that they would both lose business to the bigger financial centres.

The International Financial Services Centre hosted more than 3,700 funds worth more than €586 billion, according to 2005 figures. EU-wide funds are worth an estimated €6 trillion.

Both countries had convinced internal market commissioner Charlie McCreevy to omit the so-called management company passport in his update of rules forcollective investment in transferable securities (UCITS).