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Embargoed
until Thursday 15 May 2003
IMA
CHAIRMAN URGES FUND MANAGERS TO APPLY
‘THE
RONSEAL PROMISE’
Alan Burton,
outgoing Chairman of the Investment Management Association,
today called on the financial services industry to take
action to regain investor confidence and not wait for the
equity markets or the regulator to solve its problem.
Speaking at the
Annual Dinner of the Association, he said, “We need, as an
industry, to accept blame where blame is due and not just
moan or accept the state of affairs passively…
If we focus on running our businesses on clear
principles and guidelines which are in the interests of all
our stakeholders then they all prosper.”
The asset
management industry, he went on, “seems to be trapped in a
regulatory vicious circle in which low public confidence,
industry failings and defensiveness and increased regulation
feed off each other.
“Waiting for
the equity markets to recover to solve our problems could be
a long wait,” he added. To restore consumers’
confidence, he called on the industry to:
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“stop
churning out unnecessary ‘flavour of the season’,
‘me-too’ products;
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“consider
how we can improve market efficiency so there is real
competition for customers not just distributors
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“identify
barriers to administrative efficiencies.
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“demonstrate
that we take our responsibilities as shareholders
seriously by ensuring we positively support the ISC
(Institutional Shareholders Committee)
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“but
most of all, apply the Ronseal promise---‘say what it
does on the tin and do what it says on the tin.’”
Mr Burton also
criticised proposals to apply charge caps to the simple
savings products, recommended by Ron Sandler in his review
of Medium and Long-Term Retail Savings in the UK.
“Government and Regulators should establish the climate
for competition not design and price products,” he said.
A
copy of Mr Burton’s speech is attached.
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Ends -
For
further information, please contact:
Richard
Saunders, Chief Executive, IMA, 020 7831 0898
Clare
Arber, Head of Communications, IMA, 020 7831 0898
Helen
Stephenson, Communications Officer, IMA, 020 7831 0898
Notes to
Editors:
The Investment
Management Association (IMA) is the trade body for the UK
investment management industry.
IMA’s members provide investment management
services to institutions (for example, life assurance
companies, pension funds, and individual companies) and to
private investors, through individual fund management
agreements and pooled products such as authorised investment
funds. Between them, IMA’s members manage some £2,000
billion worth of assets in the UK and over £4,600 billion
worldwide.
65
Kingsway London WC2B 6TD
Tel:
+44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975
www.investmentuk.org
Investment
Management Association is a company limited by guarantee
registered in England and Wales Registered number 4343737.
Registered office as above.
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