The Association of Investment Companies (AIC) has described the temporary suspension cost disclosure rules as a “breakthrough following today’s (19 September) HM Treasury ‘Reforms to Financial Services retail-disclosure requirements’ announcement and the FCA’s ‘Statement on forbearance in relation to investment trust disclosure requirements’.
The new approach is against the backdrop of the replacement of EU-inherited consumer disclosure regulation with a new framework for UK markets and firms.
Richard Stone, chief executive of the Association of Investment Companies (AIC), said: “This leap forward on cost disclosure is great news for investment companies and their investors. The temporary suspension of the rules paves the way for a permanent solution to this long-standing and damaging problem.
“It’s good that the Treasury and FCA have recognised that the current cost disclosure regime is not working. The AIC has lobbied tirelessly on this issue and it’s encouraging that the Labour government has acted so swiftly.
“We look forward to working with the FCA as it consults on the new Consumer Composite Investments (CCI) regime. It’s vital that these new rules recognise the unique characteristics of investment companies, permanently end misleading cost disclosures which distort the market, and enable investors to make better informed decisions.
“Investment companies are a great UK success story and have a vital role in bridging the gap between private assets and public markets. Ending misleading cost disclosures will enable us to continue delivering for investors and make a critical contribution to the economy as the government drives forward its ambitions for growth, investment and wealth creation.”
