Autumn Statement: AIC applauds action on investment company cost disclosure
AIC welcomes the government’s announcement that powers will be handed to the Financial Conduct Authority (FCA) to resolve the issues with investment company cost disclosures.
See government papers: ‘UK Retail Disclosure Framework – Draft SI and Policy Note’
The Association of Investment Companies (AIC) warmly welcomes the government’s announcement that powers will be handed to the Financial Conduct Authority (FCA) to resolve the issues with investment company cost disclosures.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “We applaud the government’s announcement that powers will be handed to the FCA to deal with the pressing issue of cost disclosures. The AIC, the industry and parliamentarians including Baroness Bowles and Baroness Altmann have lobbied hard against damaging and misleading cost disclosures which have prompted selling of investment companies by some investors.
“It is vital that we create a level playing field for cost disclosure between investment companies and open-ended funds, so it is good to see the intention to bring UCITS funds within the same regime. The new regime must give investors the information they need to make informed decisions without any bias against investment companies and we look forward to working with the government on this.
“The publication of the draft statutory instrument is welcome as is the stated intention to bring a similar instrument forward on MiFID allowing the FCA to address all the relevant issues. We will be looking at the details of the draft legislation to ensure that the powers handed to the FCA are wide enough. Action needs to be taken swiftly, and given the length of the legislative processes it is also encouraging to hear that the FCA is considering interim action to help mitigate the problems in the short term.”
“We applaud the government’s announcement that powers will be handed to the FCA to deal with the pressing issue of cost disclosures. The AIC, the industry and parliamentarians including Baroness Bowles and Baroness Altmann have lobbied hard against damaging and misleading cost disclosures which have prompted selling of investment companies by some investors.”
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
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Notes to editors
1. The AIC has long campaigned for the abolition of Key Information Documents (KIDs). Please see our releases and papers on this topic: AIC calls for KIDs to be suspended, Burn before reading – paper, Burn before reading – blog, AIC welcomes delay to proposed changes to Key Information Documents (KIDs) and Goodbye Mr PRIIPs.
2.The Association of Investment Companies (AIC) represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s vision is for investment companies to be understood and considered by every investor. The AIC has 343 members and the industry has total assets of approximately £256 billion.
3. For more information about the AIC and investment companies, visit the AIC’s website.
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