View more on these topics

Regulator relents over investment trust rules

The FSA has watered down its proposed rules for investment trusts after facing stiff industry opposition to its consultation paper on changes to listing rules.

In January, the regulator said it planned to overhaul existing rules and impose harsh restrictions on ITs in an effort to ensure that a “magic circle” of providers does not develop. Although its intentions were welcomed, the FSA&#39s tough requirements and constraints led to a campaign being waged – spearheaded by the AITC – to get the proposals amended.

Given the weight of opposition, the regular has decided to alter many of the rules set out in CP164: Proposed changes to the Listing Rules and Conduct of Business Rules. Most notably, fund managers will be able to sit on trust boards, trusts will be able to invest in funds of funds in much the same way as before while proposed rules forcing trusts to disclose their portfolios have been diluted.

The new proposals have been welcomed by the industry, with the AITC praising the FSA&#39s willingness to respond to criticism.

Director general Daniel Godfrey says: “The FSA has shown again that when they say consultation they really mean it. On the three main issues where the AITC put forward alternative proposals, there has been significant change.”

BFS Investments director Nigel Sidebottom says: “I am pleased that the FSA has changed the proposals on Fof. That is very important. But I am disappointed that there remain restrictions although they are better than they were.”

Recommended

&#39Most fixed-rate mortgages are overpriced&#39

The majority of fixed-rate mortgages are currently overpriced, says The MarketPlace at Bradford & Bingley.Head of product operations David Bitner says, despite the drop in the bank base rate in July, fixed rates have risen dramatically in the last month with the City expecting rate rises.He says there are still some cheap deals, such as […]

Ross ousted at Widows

Scottish Widows chief executive Mike Ross has been ousted in a shake-up which sees Lloyds TSB man Archie Kane take his place.The news comes the same week the FSA is expected to hit Lloyds with a hefty fine for misselling structured products.Ross leaves Widows after nearly 40 years, having led it to become one of […]

FSA waters down trust proposals

The FSA has watered down its proposed rules for investment trusts after consulting with the industry. Subject to annual re-election, fund managers will be able to sit on trust boards, trusts will be able to invest in funds of funds in much the same way as before while proposed rules forcing trusts to disclose their […]

Euro vote on directive could send Sandler suite crashing

A leading MEP has warned that a vote on amendments to the European Union investment services directive could decide the future of the Sandler suite of products.Conservative MEP Theresa Villiers believes if proposed changes to the ISD are not adopted by the EU parliament in Strasbourg this week, the UK Government could face a major […]

employee-focus-group

Five ways to make your employee focus group session a success

by Debra Corey, group reward director  You just planned and booked what you thought was the perfect vacation for you and your family. You call everyone together to share the great news and instead of receiving sounds of glee and delight, you receive groans and complaints.Your youngest says: “I hate beaches, didn’t you know that?” (You think to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment