The FSA has proposed to remove the 21-day maximum period for initial offer periods as part of its go...
The FSA has proposed to remove the 21-day maximum period for initial offer periods as part of its goal to eject unnecessary prescription from current rules.
It aims to change the present ruling and extend offer periods to any length that is appropriate to the fund's objectives.
Toby Hogbin, product development manager for Credit Suisse Asset Management, said the move is very positive for investors and providers.
'Any simplification has to be a good thing. It will allow a much greater flexibility in product design.
'For example if a company is launching a limited issue fund written to a certain maturity date, a longer offer period would be available for the fund to raise more assets,' he added.
Hogbin said investment managers would use whatever the available offer period was in a responsible manner.
He does not think the new regulation will have any real impact on early investment incentives, typically available to potential investors during offer periods.
He said: 'A mass inflow of money to a new fund is not always available. This proposal will give a greater chance to get to a self sufficient level of assets.'
Reduced after-sales requirements proposed in CP 185 will contribute to an industry saving of £10m, the FSA believes.
Fund groups will no longer be obliged to send investors full six month and annual report and accounts, but instead be able to mail out summarised versions focusing on the fund's performance.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
Senior Managers Regime
Interest rate outlook unchaged
FCA made demands last week