FSA to tighten closed end fund rules

The FSA is to tighten up the listing rules for closed end funds to include greater clarity on their investment policy, gearing, risk management and corporate governance. In an apparent response to the cross-holdings that contributed to the collapse of the split-cap sector, FSA chairman Howard Davies said the wide-ranging regulatory upgrade will limit the percentage of total assets that can be invested in other funds. The alterations to the listing rules governing the interests of investors in investment companies, including investment trusts, will be consulted on early next year. They a...