FCA under pressure to 'quickly' deliver solutions to investment trust cost disclosure issues
Chancellor Jeremy Hunt. © Zara Farrar — HM Treasury
As part of the Autumn Statement on 22 November, the Treasury unveiled a consultation that proposed making changes to PRIIPs and MiFID, which could help resolve the difficulties encountered by inaccurate disclosure, with firms given until 10 January 2024 to respond.
The draft statutory instrument, 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.
In a Treasury Select Committee hearing on Wednesday (29 November), Chancellor Jeremy Hunt was asked by MPs how quickly after that deadline had passed the government would be able to enact the statutory instrument.
Autumn Statement 23: FCA mulls 'interim solutions' to address investment trust cost disclosure concerns
The chancellor declined to disclose an exact date, but noted the government recognised the urgency of the action needed to rectify the issue and said it would assess the consultation's responses «as quickly as we can».
«We have made a lot of progress in terms of the draft regulations to replace the previous regulations that we inherited from the EU, accepting Rachel Kent's report on the MIFID regulations, and we want to work at pace with the FCA to resolve this,» he said.
The financial watchdog will also publish a consultation on its draft rules to replace the PRIIPs regulation, and certain MiFID provisions related to cost disclosure, in the first half of 2024.
MP John Baron asked if the government was applying «gentle pressure» for the regulator to complete its consultation process, to which Hunt responded that there is a
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