10% limit on crossholdings proposed in response to split-cap problems
Closed-end funds will be prevented from putting more than 10% of their assets in other closed-end funds under plans put forward by the FSA as part of its response to problems suffered by split-capital trusts. Consultation paper CP164, released last week, proposed a number of measures designed to increase the information and protection available to investment trust investors. The paper stated the new safeguards will address weaknesses in the design of split-capital trusts that were exposed by bearish market conditions. They include a 10% limit on an investment company's gross assets ...
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