Autumn Statement 23: FCA mulls 'interim solutions' to address investment trust cost disclosure concerns
The FCA is considering “interim solutions” to mitigate the impacts on the investment company sector in the short term, as the government “acts to implement a long-term legislative solution to the issue”.
Alongside Chancellor Jeremy Hunt's Autumn Statement delivered in parliament today (22 November), the Treasury has published a draft statutory instrument outlining the UK's new retail disclosure framework for Consumer Composite Investments (CCIs).
The document, which outlines the scope of the framework and rule-making powers provided to the FCA by the Treasury, also notes concerns about current cost disclosure requirements, and in particular their potential impact on the investment trust sector.
Members of the House of Lords and industry players such as Gravis have repeatedly called for the removal of the current EU cost disclosure rules, known as PRIIPS, which have caused investment trust charges to appear artificially expensive.
Bill to overhaul investment trust cost disclosure rules to be debated in parliament
A private members' bill tabled by former pensions minister Ros Altmann, which urged the government to remove investment companies from the Alternative Investment Fund Managers Directive (AIFMD) regulation, was debated in parliament last week.
«The UK has a world leading investment company sector, which is highly aligned with the government's priority to promote long term, productive investment,» the Treasury said.
«Representing over £260bn of assets, investment companies provide a key source of capital and liquidity to support economic growth.»
The Treasury said it has provided the FCA with the «appropriate» rule-making powers to reform cost disclosure requirements currently set out in the PRIIPs regulation,
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