View more on these topics

RDR CP: Fund manager proposals “not proportionate”, says IMA

The Investment Management Association says the FSA’s proposals for fund managers are not proportionate.

The IMA says many of the regulator’s intentions and observations on adviser charging outlined in the latest retail distribution review consultation paper are sensible but it questions its proposals for fund managers.

IMA director of authorised funds & tax Julie Patterson says: “They will account for a significant proportion of the £140m annual cost identified in the FSA’s cost benefit analysis. Yet that analysis identifies no mis-selling in relation to funds. We shall consider the implications in more detail and continue to debate them with the FSA.”

The FSA’s latest proposals prohibit fund managers from making ongoing deductions made from a fund for particular consumers without creating separate share classes.

The FSA says this would allow fund managers to choose to offer a reasonable range of different share classes if they wished to support different levels of ongoing adviser charges.

The IMA expresses disappointment that structured deposits were not included in the wider scope of products included in the latest proposals.

It also says the labelling of the types of advice available remains a concern.

Patterson says: “We question whether the ‘simple advice process’ and ‘basic advice’ are needed, and having both can only result in confusion. It is crucial that this is resolved before implementation.”


Panel wants focus to help consumers

The Financial Services Consumer Panel has called for the FSA to publish information on firms’ performance and take over regulation of consumer credit from the Office of Fair Trading.

FTSE cautious at open

The FTSE opened higher at 4,238 today but lacked conviction from investors ahead of this afternoon’s meeting with members of the UK monetary policy committee who are due to testify on the inflation report.


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