View more on these topics

FSA is swinging towards single pricing for funds

The FSA is considering an overhaul of unit trust and Oeic regulations to bring single pricing and greater transparency to fund dealing.

In a discussion paper this week, the FSA says research reveals investors are confused by dual pricing structures.

Single pricing is the standard for Oeics but most unit trusts operate dual pricing. The FSA is looking at improving Oeic rules with a single price structure which includes all dealing costs.

Currently, investor dealing costs are covered within the bid/offer spread on dual-priced funds or within a dilution levy on single-priced trusts. Several other fund costs are removed directly from the fund&#39s assets but are not reflected in the annual fee.

Of four possible regimes, the favoured option appears to be a single swinging price, which would see unit prices adjusted marginally on whether purchases were exceeding redemptions or vice versa.

A consultation paper will be published in January.

FSA head of collective schemes Kevin Tomlin says: “We have found investors prefer a single price when buying and selling units but they can be confused by associated dealing costs under the existing single-pricing system.”


ABI claims that IFAs want quality marks extended

IFAs would like to see the ABI&#39s Raising Standards quality mark extended to mortgages and financial advice, according to a survey conducted by the ABI&#39s for its Saltr initiative.The research with 21 IFAs was undertaken early this month and revealed more than 76 per cent – 16 of those surveyed – said where there is […]

&#39Sandler must see value of IFAs&#39 – Torquil Clark

The industry should be encouraged to move towards charging fees if it wants to improve professionalism and consumer confidence, says IFA Torquil Clark in its Sandler response.The IFA says in order to bring further clarity, advice must be separated from product purchase, a move which will increase the likelihood that consumers will view IFAs as […]

Gartmore Investment – Gartmore Premier VCT

Monday, October 22, 2001.Aim: Growth by investing initially in a portfolio of fixed interestsecurities, high-yielding smaller companies and Gartmore collectiveinvestment funds, then smaller companies listed on AiM, OFEXindices, unquoted companies and fixed interest securities.Minimum investment: Lump sum £3,000.Opening-closing date: October 8, 2001-April 3, 2002 tax year2001/2002, April 30, 2002 tax year 2002/2003.Charges: Initial up to […]

Product matters

A number of groups are launching new funds at the mom-ent. Given the present state of the investment market, they will prob-ably struggle to obtain much new money.A headache for marketing departments but a godsend to investors brave enough to venture out. Smaller funds with dynamic fund managers who are heavily incentivised make for a […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment