The AITC has proposed disclosure rules for investment trusts, that would see them reveal their holdi...
The AITC has proposed disclosure rules for investment trusts, that would see them reveal their holdings in split-capital trusts with a two-month delay.
The proposal is contained in the AITC's response to the FSA's Consultation Paper 164, which canvasses various changes to the regulation of investment trusts following the collapse of a number of split-capital trusts.
The FSA suggested investment trusts disclose on a monthly basis all holdings of more than 0.5% and all holdings of any size in funds that allow investment in other funds.
In its response, the AITC said this would be costly and time-consuming and well beyond the disclosure requirements of any other form of collective investment fund.
AITC technical director Ian Sayers, who penned the response, also said the requirement would compromise the strategy of managers who are trying to build up a stake in a company.
Sayers instead proposed that trusts disclose all holdings in splits on a monthly basis with a two-month delay, and to list holdings making up at least 90% of their portfolio twice yearly.
The AITC has rejected FSA proposals to ban members of a trust's investment management company from sitting on the board of the trust, saying it is important for communication between the board and the manager.
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