House of Lords questions FCA's ability to 'protect market stability'
Current EU cost disclosure rules, known as PRIIPS, have caused investment trust charges to appear artificially expensive, deterring investment in various areas, particularly battery storage, wind and solar farms.
Yesterday (13 November), members debated a private bill brought forward by former pensions minister Ros Altmann, which would overhaul the cost disclosure regulation for UK investment companies and remove investment companies from the Alternative Investment Fund Managers Directive (AIFMD) regulation.
Altman said the current EU cost disclosure rules, known as PRIIPS, have caused investment trust charges to appear artificially expensive, which had been deterring investment in various areas, particularly battery storage, wind and solar farms.
Bill to overhaul investment trust cost disclosure rules to be debated in parliament
Joanna Penn, parliamentary secretary for the Treasury, affirmed that both the government and the FCA «understand industry concerns» regarding investment company cost disclosure requirements, and said both institutions were «working at pace to repeal retained EU law under the smarter regulatory framework enabling the FCA to deliver UK take tailored rules on the alternative investment fund managers directive specifically».
In response, Altmann asked the if Treasury truly recognised the UK financial sector was «being undermined by selling pressure based on exaggerated reported charges figures».
She further pressed if Penn's department had «urged emergency action following FCA failure to protect the market stability, international competitiveness, fair competition and Consumer Duty?».
In response to the question, Penn agreed that investment trusts «play a vital role in raising capital» and
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