View more on these topics

IMA shelves alphabet soup plans as it extends feedback

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.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm