View more on these topics

Fund firms united on splits’ rules

The investment industry has told the Treasury that the present regulatory structure should not be changed.

In its response to a Treasury consultation, the Association of Investment Trust Companies says measures already carried out are sufficient to ensure that issues such as the splits’ debacle will not be repeated.

It believes that measures to strengthen board independence and the introduction of minimum standards of governance mean that changes are not needed.

The Treasury select comm-ittee recommended a consultation on the regulatory structure in its report on the splits’ crisis. Since then, the FSA has amended listing rules and conduct of business rules and the AITC has introduced a corporate governance code.

The Investment Management Association says more transparency has already been provided for investors in the light of implementation of the EU prospectus and market abuse directives and international accounting standards.It wants the new rules to be allowed to bed down before any further changes.

Both the AITC and the IMA have recommended an extension of the remit of the Financial Ombudsman Service to include direct investors who buy equities after relying on what they believe to be misleading ads.

Direct investors have been denied access to the FOS following the splits’ crisis while execution-only investors who bought shares through a wrapper such as an Isa do have access to the FOS.

AITC director general Daniel Godfrey says: “Steps taken by the regulator and the industry to strengthen investor protection since the splits’ crisis have been highly effective. On this basis, change to the regulatory system would run great risks of damaging the interests of those it is meant to help.”

Recommended

Highbury Financial Services fined 35,000 for misleading financial promotions

The FSA has fined penny share tipping company Highbury Financial Services Limited 35,000 for the publication of misleading financial promotions.The fine was for three promotions entitled “The 25 Shares Most Likely to Double in 2004”.The FSA found these promotions which were published in two national newspapers and one national journal, posed a risk to customers […]

Pension certificate from PMI

The Pensions Management Institute is taking applications for its newly launched pension plan executive cetificate via its website.The first PPE certificates will be issued from April. Holders will be required to complete PMI’s new accredited professional development programme on an annual basis to renew their PPEC certificate.

Guide

Guide: how to change your auto-enrolment support

As we approach the two-year milestone of auto-enrolment, employers have had the opportunity to truly assess the capabilities of their chosen support. They are also now realising that getting to the staging date was the easy part, and that support is required for almost every aspect of the day to day running of their scheme. With the three-year re-enrolment window coinciding for many with the total removal of commission and Active Member Discounts from pension-related products and services, as well as the introduction of the pension charge cap in April 2015, many employers will have no choice but to review their support options. But, what is involved in transitioning your auto-enrolment scheme away from your current support options? This guide from Johnson Fleming aims to outline some of these key areas and provide information and discussion points on what you need to consider.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment