THE FSA may be forced to rethink its views on the use of past performance data, says this morning's ...
THE FSA may be forced to rethink its views on the use of past performance data, says this morning's FT, but not for the reasons originally put forward by fund managers.
Research conducted by professors David Blake of Birkbeck College and Allan Timmermann of the University of California - challenges the FSA's view that statistics on past performance are irrelevant to investors choosing funds, say the FT, when there is evidence of persistent underperformance.
Instead, the two parties argue that while there is no evidence of persistently strong performance, is it is the FSA's duty to ensure consumers are kept informed of continuous underperformance by fund managers.
THE TIMES has also discovered, despite the industry talking about it for some time now, that the financial services industry is sinking under reams of paperwork issued by the FSA.
Since officially taking power at N2 in 2001, the FSA has issued more than 150 regulatory papers.
But by the end of the year, the FSA is expected to have issued another 94 papers - on average five different reports every fortnight.
A SECOND story in the Times says the Revenue has plugged a legal loophole used by the high net worth, by preventing the use of trust to hide losses behind discount securities.
Could this be the rule which allowed people to use SSASs to take loans?
Exploitation of the relevant discounted securities rules did allow individuals to invest a sum in a company, which then went to buy a loan, and even though stocks had made a loss. Despite the loss in value of securities, people were able to write it as an effective an valid tax loss.
A PROPOSAL put forward by the ABI could help plug the savings gap by £5bn a year and a cost to the Treasury of only £1bn a year, says the Daily Telegraph.
Alan Woods, head of life and pensions at the ABI, is expected to point out at the ABI's first national conference this week that were the Government to grant a rebate on National Insurance contributions, it could provide companies with an incentive to encourage savings through the workplace. It could increase savings by around £3bn a year at a cost of just £900m.
Furthermore, if some form of advice credit were offered to employees, it could encourage provide an additional £2bn to the pot, at a cost of just £100m.
GORDON Brown's Budget is likely to see hugely revised forecasts and an announcement of increased borrowing over the next three years to the tune of £45bn, says the Daily Telegraph.
Growth forecasts will be cut to 2.25% this year and 2.5% in 2004-2005, blaming the war in Iraq and weakened European economy for the problems.
AND it looks as though Bank of England base rates could remain unchanged when the Monetary Policy Council meets later this week, according to the Scotsman.
Comments gathered from investment houses suggest the MPC will wait and see what the war with Iraq does to the economy before making any major decisions.
Partner Insight: Continuing the Architas education series for clients.
What made financial headlines over the weekend?
290,000 already affected
Putting the tech into protection
Square Mile’s series of informal interviews