By:Elliot Gulliver-Needham, Thursday 19 September 2024:
The UK has finally exempted investment trusts from complying with cost disclosure requirements that industry experts say could unlock billions in investment.
In a statement today, the government and Financial Conduct Authority said regulators would temporarily withdraw the requirements, which campaigners have argued force trusts to ‘double count’ their fees..
The move from the FCA and the government comes as part of wider plans to reform UK retail disclosure rules..
Eyes will now be on data publishers to see how quickly they will update their cost disclosures, he said.
“This is not a magic bullet to solve the sector’s discount problem and the absurd situation where wealth managers and others have been avoiding taking advantage of some of the amazing bargains in the sector,” added James Carthew, head of investment company research at QuotedData.
“It will take time to rebuild, but this should help stop the rot.”
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