The ABI is to review the purpose and function of its Fund Sectors, starting with the controversial Money Market area.
A review of this sector will be welcomed by advisers who have been hit by the fall-out from the loss of value on Standard Life's Pension Sterling fund.
Many said they had been unaware a large proportion of the fund had been in asset-backed securities rather than just cash and will be hoping the ABI's review of its sectors will make it easier to identify pure cash funds in the future.
The ABI Fund Sectors categorise different types of investment fund, allowing consumers and financial advisers to compare funds with similar investment profiles.
"The current economic crisis has highlighted the need for a fundamental review of the ABI Sectors to ensure that they continue to meet the needs of consumers and advisers as risk changes," says Stephen Haddrill, ABI director general.
"This review shows our determination to act in the interests of consumers, and is a positive step forward for customers of the insurance industry and their financial advisers.
"Alongside it, we have repeated our expectation that all communications with customers about investment funds should be clear and transparent about the types of assets held in those funds and the level of risk they carry."
All relevant bodies will be consulted in the course of the review, including the IMA, FSA, AIFA, consumer organisations and data analysis companies.
The IMA says it is aware of the issues surrounding money market funds and welcomes any proposals to reform its Money Market sector.IFAonline
Nine sub-funds launching
Our weekly heads-up for advisers
'Nothing can prevent scammers developing workarounds'
Stalwart Scottish Mortgage takes third place
Consistency and compliance vs. slower reaction time