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For immediate release: Friday 30 September 2005
IMA RESPONDS TO FSA DISCUSSION PAPER ON RETAIL UNBUNDLING
Responding to the FSAs consultation paper CP05/13: Bundled brokerage and soft commission arrangements for retail investment funds Julie Patterson, Director - Regulation, Operation and Taxation of the IMA commented:
IMA is disappointed that in its consultation on the reporting of bundled brokerage within retail products, the FSA has not properly taken into account the extensive work undertaken by the IMA in 2004 on the governance of collective investment schemes.
We are particularly concerned by the FSAs suggestion that information on brokerage and commissions should not be made available to the retail investor. IMA believes that investors should have access to the same information as reported to the trustee in order to see where their money is being spent.
It is also baffling to read that while CIS products are super-equivalent to others in that they have totally independent oversight in the form of trustees, the FSA is proposing that some products will be allowed to report in house and not make their information public to the end investor. IMA questions how this is in the interest of fairness and accountability to investors.
IMAs review of corporate governance of Collective Investment Schemes is attached.
-Ends-
For further information, please contact:
Helen Stephenson, Communications Officer, IMA, 020 7831 0898
Out of hours contact:
Mona Patel, Head of Communications, IMA, 07834 089332
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