IMA 'unfit to classify sectors', says thinktank

A paper being reviewed by the House of Lords has launched an attack on the Investment Management Association, saying it is ill-equipped to decide on sector classifications, and the job should fall to a more impartial body.

Michael Johnson, author of the paper and research fellow at the Centre for Policy Studies, criticised the IMA for not being able to categorise funds fairly. "The IMA is an industry body and is paid to represent industry members. It is not impartial in categorising funds because ultimately its interest is attracting more business to the industry," he said. Johnson referred to the recent industry criticism of the Managed sector categories for being unclear and misleading, as an example of the flawed nature of the classifications. The IMA moved to reclassify the sector at the end of last...