The House of Lords has called on the Financial Conduct Authority to take urgent action in resolving the problems caused by its application of the cost disclosure regime on investment trusts.
In a letter to FCA CEO Nikhil Rathi on Tuesday (30 April), the Financial Services Regulation Committee, a newly formed body to oversee UK financial regulators, said the watchdog's interpretation of retained EU regulations is costing the sector £7bn per year. The UK's application of MiFID and PRIIPs requires investment trusts to report costs in the same format as unlisted open-ended funds. According to the committee, this creates a "falsely elevated" number for aggregated ongoing cost forecasts of funds which are held by investment trusts, giving "misleading" information to investors...
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