The Investment Association has confirmed it will reinstate yield monitoring tests and enforcement for the UK Equity Income and Global Equity Income sectors from 24 September 2021.
The decision to reinstate the tests was made because of "calmer market conditions and the continued easing of the pandemic, the IA said. According to the trade body's Sectors Committee, this will include the enforcement of the one- and three-year threshold tests. The yield tests were suspended by the IA in April 2020 because of the pandemic to enable fund managers to focus on long-term management rather than making changes in the immediate term to meet sector requirements. It meant that if any fund fell short of the 90% yield threshold, it wouldn't have been automatically removed from...
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