The ABI has launched a review of its life and pension fund sectors which categorises over 6,000 unit-linked life and pension funds.
The sectors enable advisers and consumers to compare similar funds on a like-for-like basis, and are independently monitored by the ABI.
Over £500bn of assets are managed in these funds and the review has now reached the consultation stage, with views being sought from across the industry.
ABI Investment Classification Committee chairman Jeremy Thatcher says: “The ABI sectors are used by many financial advisers and consumers. Our proposals will refresh the sectors and reflect ongoing market changes affecting life and pension funds. As part of the review, we initiated discussions with the Investment Management Association to work towards the goal of greater harmonisation of fund sector parameters.
“Recent survey work showed that advisers trust the ABI Sectors and value their impartiality. This exercise aims to build on the significant improvements already made to the sectors, and to deliver maximum benefit to those who use them.”
The consultation aims to gather views from providers and advisers on a range of proposals to improve the current sector criteria which include new criteria for mixed asset fund sectors, the introduction of three new fixed interest sectors, new sectors to reflect the growing number and diversity of property funds and the introduction of a flagging system to allow greater detail on sector sub-groupings.
The deadline for responses to the consultation is July 13 2007 and the ABI’s final proposals will be published later in the summer of 2007.