View more on these topics

AITC supports FSA move towards regulation of investment trusts

The Association of Investment Trust Companies is backing FSA moves to regulate investment trust companies following the split-capital debacle.

The FSA has produced consultation paper 164 in response to recommendations made by the Treasury select committee in February 2003. The paper looks at several possible scenarios for investment trust regulation, including direct regulation, regulation of the people who own investment trusts or building on the existing framework that is already in place.

Investment trusts, as listed companies, are currently regulated by company law and the FSA’s listing rules. Sale and promotion of trusts by advisers or through manager-sponsored savings products is regulated by the FSA, as are external fund managers.

The AITC says it is vital that investment trusts maintain features such as Stock Exchange listing, the closed-end structure, independent boards and the ability to gear and issue different share classes under the new regulatory regime.

AITC director general Daniel Godfrey says: ” We will be looking carefully at the issues raised in this consultation to see whether there are areas where improvement is still possible, for example, investment trust investors’ access to the Financial Ombudsman Service.”

Recommended

Out of context

Any Out of Contexts or Diary stories? Send them to Diary editor Alison Bone, email: alison.bone@centaur.co.uk or tel: 0207 943 8037

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment