Mis-selling fears leave Absolute Return sector revamp in limbo

The IMA sector committee carrying out the review into the Absolute Return sector is divided over whether to change the sector's name, Investment Week understands.

Fund management firms opposing the name change are concerned they will open the door to mis-selling allegations if they have to strip the words ‘absolute return’ out of their propositions. Meanwhile, other fund group committee members are lobbying to rename the sector, but to date have not offered any viable alternatives. The dispute is expected to result in the review being delayed once again, until the second half of the year. Last summer the IMA pushed back its review, slated for completion by the end of 2011, affirming it would be finished in the first half of 2012. “The com...