Government's draft proposal for cost disclosure reform outlines scale of misregulation

'Not an accurate representation of actual cost'

The government has published its draft legislation for the investment trust cost disclosure reforms it is seeking to enact next year, as the movement ekes towards a resolution for the sector.

In September, the Treasury and the FCA have moved to temporarily make investment trusts exempt from complying with cost disclosure requirements with the aim of bringing in wider reforms next year. Last night (7 October), on the government's first day back from recess, policymakers published draft legislation for a new statutory instrument called ‘The Packaged Retail and Insurance-based Investment Products (Retail Disclosure) (Amendment) Regulations 2024', giving an insight into the long-term plans to resolve a years-long issue with investment trusts. Previously, trusts were subject to...