View more on these topics

Investment Association retreats on statement of principles timeline

Board-Room-Meeting-Room-Business-700

The Investment Association has pushed back indefinitely the deadline for fund managers to sign up to its statement of principles after members raised concerns about the additional compliance burden imposed by the project.

The trade body unveiled the initiative in April and in August it said 25 signatories were to publish statements on their websites from 1 January 2016 onwards.

Since then, two of its biggest members, Schroders and M&G, which have not taken part in the initiative, have threatened to leave the trade body. Daniel Godfrey was subsequently ousted as chief executive of the trade body.

The 10 key principles include outlined by Godfrey include encouraging investment managers to “always put clients’ interests first and ahead of their own” in the execution of their duties, as well as “ensure regular, timely and clear lines of communication with clients,” and “maintain a corporate culture that sustains these principles”.

In a statement published today, the IA says: “While members are clearly supportive of the principle of putting clients first, as well as all the other principles outlined, a number have expressed concern that the website-based reporting requirement aspect is adding an additional compliance burden, while the purpose of the project has always been to demonstrate to investors the values we hold as an industry.

“It is clear now to the Investment Association that the reporting requirement aspect of the statement of principles needs further consideration and so the Investment Association is extending the timetable to allow for additional discussion with the industry on these aspects.”

The trade body also says upcoming regulations may influence the way the statement of principles is implemented.

Th IA says during this discussion period it will not be maintaining a list of signatories and there will be no requirement for member firms to publish statements on their websites.

IA interim chief executive Guy Sears says: “The concerns members have raised have always been around the technical aspects of the project and nothing more and members are fully supportive of the values in the statement of principles.”

Recommended

1

Pension tax relief reform ‘will solve auto-enrol net pay problem’

Providers operating “net pay” automatic enrolment schemes will be forced to abandon the model, which denies low earners tax relief, if the Government presses ahead with radical reform to pension tax incentives. Since 2001, non-taxpayers have been able to claim tax relief on pension contributions. However, if schemes use the net pay model of paying […]

Gordon_Brown
1

Former PM Gordon Brown to join Pimco

Former prime minister Gordon Brown is to join the board of asset manager Pimco as an adviser. He will attend board meetings – chaired by former Federal Reserve chairman Ben Bernanke – and make a speech at the firm’s annual ‘secular forum’, the Financial Times reports. Pimco would not disclose how much it will pay […]

FCA logo new 3 620x430
15

FCA hikes adviser cap-ad requirements

The FCA will increase the minimum capital adequacy requirements for adviser firms to £20,000 from June next year. Following a consultation on changing the capital resources requirements for firms offering investment advice, the FCA has confirmed it will hike the minimum requirement from the current £10,000 to £20,000 by 30 June 2016. The new rules mean advisers […]

Standard Life new logo
19

‘Scandalous’ and ‘obscene’: Advisers react to Standard Life commission cull

Standard Life Investment’s decision to stop all trail commission payments on mutual funds is “scandalous” and “obscene”, say advisers. This morning Money Marketing revealed Standard Life Investments will cease payments to align new and legacy business “reflecting the spirit of the Retail Distribution Review”. But advisers say the move – which will see charges fall, […]

Life cover for life

Jennifer Gilchrist Proposition Lead – Design, Royal London When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that way because before the arrival of RDR in 2013, that’s more […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment