For immediate release: Thursday 29 June 2006 

COMMISSION DISCLOSURE ARRANGEMENTS FOR RETAIL FUNDS – INDUSTRY READY

In response to the FSA’s feedback statement, published today, on how it proposes to approach disclosure of commission arrangements for retail funds, Sheila Nicoll, Deputy Chief Executive of the IMA, commented:

“We fully agree that it is important to have a mechanism in place for the independent oversight and review of commission disclosure of retail funds to complement that in place for pension funds.

In keeping with principle-based regulation, we understand the FSA’s desire to apply a market solution in this area, and agree that there is a need for independent oversight and regular review of commission arrangements.  For authorised investment funds, trustees and depositaries already provide such oversight and have indicated their willingness to add the oversight of commission disclosure to the other functions they already provide”

David England, Chairman of the Depositary and Trustee Association (DATA)¹, added:

“Our Members believe they are well placed to take on the additional role of overseeing commission disclosure. We look forward to working with FSA and other trade associations to take this initiative forward.”

 
-Ends-

Notes to editors:
1. The Depositary and Trustee Association (DATA) represents the industry views of depositaries of open-ended investment companies and trustees of unit trusts within the UK. Its prime objective is to promote, support, oppose or propose changes in the relevant UK and EU legislation, in respect of the responsibilities of members of the Association and to promote and support the development of the depositary and unit trust trustee industry in the UK. 

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