Fund companies have welcomed the Investment Management Association’s decision to delay the implementation of its new managed sector definitions following an industry outcry.
The IMA has pushed back the deadline from July 1 to October 1, after members called for more time to respond to the proposals. Members were initially expected to give feedback to the IMA sector review on June 17 but the date has now been set for July 29.
The decision to rename the sectors A, B and C and to create a lower-risk D category has proved to be unpopular with asset managers or advisers.
Rathbones chief executive Mike Webb says: “The delay is a good idea. The IMA needs to talk to IFAs and end-investors to get a solution that is correct for the industry. We need to come up with sensible classifications based on risk using equity weightings.”
Former M&G star and TM Darwin founder David Jane says: “I have not met a single client who thinks the new definitions are anything but silly.
“I agree with the Fidelity suggestion that sectors be should be defined around risk assets. The IMA will be focused on making sure it does a better job this time.”
Legal & General unit trust managing director Simon Ellis says: “The current proposals fail on all counts of being fair, clear and not misleading and we doubt the test can be passed without researching and testing any proposals with consumers – that is key for us.”
Informed Choice managing director Martin Bamford says: “The IMA should implement it if it believes it is the right thing to do.
“I agree with the new definitions but I appreciate it is a member organisation and has to respond to feedback.”