IA comments on FCA statement on investment company cost disclosure

Commenting on the FCA's statement on measures for investment company cost disclosure, an IA spokesperson said:

"We welcome the FCA’s statement on costs and charges relating to listed closed-ended funds. The current cost disclosure requirements for listed closed-ended funds have had the unintended consequence of creating confusion over fees, leading to adverse impacts on investment decisions. Given current legal constraints, the FCA’s statement is a very focused measure, but one that reflects the wider importance of clearer disclosures in helping investors make informed choices on where to invest their money. In the near term, it will increase transparency and we look forward to a wider discussion into next year on the future shape of the UK retail disclosure regime."

In light of the FCA's statement the IA no longer considers it appropriate to aggregate the costs arising in underlying closed-ended funds with the ongoing charges in the UCITS KIID and has removed this aspect of its guidance.

For further information, please contact:

Helen Ayres, Head of Communications: [email protected]

T: +44 (0)20 7269 4620

Arianna Schardt, Communications Executive: [email protected]

T: +44 (0)20 7269 4625

IA Press Office: [email protected]

About the Investment Association (IA):

  • The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £8.8 trillion of assets and the investment management industry supports 126,400 jobs across the UK.
  • Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
  • Our purpose is to ensure investment managers are in the best possible position to:
    • Build people’s resilience to financial adversity
    • Help people achieve their financial aspirations
    • Enable people to maintain a decent standard of living as they grow older
    • Contribute to economic growth through the efficient allocation of capital.
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
  • The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.