Cost disclosure issue
AIC calls on Treasury to announce its decision urgently.
The Association of Investment Companies (AIC) has called on the Treasury to announce its decision on whether investment companies are to be treated as Consumer Composite Investments (CCIs).
The AIC has lobbied for investment companies to be removed from the CCI regime, as this is the swiftest way to resolve long-running issues around misleading cost disclosures.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “It’s clear that the issues around investment company cost disclosure are harming the industry and putting off existing and potential investors. The Treasury has the power to resolve these issues by removing investment companies from the scope of regulated cost disclosure – returning to the position that we had before January 2018 when EU-derived legislation such as MiFID II and PRIIPs was introduced.
“Delaying this decision is damaging market confidence. Investors are receiving misleading information which may stop them buying shares which can deliver strong long-term performance. The current rules are hamstringing demand for the investment company sector which is a global leader, with the capacity to mobilise capital for UK infrastructure, renewable energy and businesses. We call on the Treasury to announce its decision urgently so we can move to the next step in the process of resolving the issues with cost disclosure.”
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Notes to editors
- The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 331 members and the industry has total assets of approximately £275 billion.
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