AIC calls on the FCA to protect investors in investment companies.
- FCA must act now to protect consumers
- Proposed changes to KID rules will not solve fundamental failings
The Association of Investment Companies (AIC) today called on the FCA to protect investors in investment companies following the European Parliament’s decision to delay the KID rules for UCITS funds for two years but not suspend them for non-UCITS funds.
Ian Sayers, Chief Executive of the AIC said: “The expected delay to KIDs for UCITS funds is welcome but leaves investors in non-UCITS funds out in the cold. Recent EU proposals to reform KIDs do not address their fundamental failings and will either do no good or make matters worse. Investors now face being misled by KIDs for years to come.
“As the EU appears unwilling or unable to protect non-UCITS investors, the FCA should take the lead and warn investors not to rely on these documents. It should ensure that the misleading information in KIDs does not pollute other areas of the market, for example by prohibiting it from being used in financial promotions and in search filters on websites.”
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- The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the 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 mission statement is to help members add value for shareholders over the longer term. The AIC has 355 members and the industry has total assets of approximately £182 billion.
- Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
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