The FSA has published a set of good practice illustrations for managers of UK collective investment schemes (CIS) to help them meet treating customers fairly(TCF) obligations.
The illustrations provide practical examples as to how CIS managers can meet the requirements to collect Management Information in two specific areas; identifying their target market and reviewing how their products are being distributed.
FSA Asset Management sector leader Dan Waters says: "The CIS industry in the UK is subject to a unique set of regulatory requirements under the COLL sourcebook and also provides products the great majority of which are sold through distribution channels not controlled by the CIS Manager.
“When we published the TCF Guidance last July we said there were likely to be some difficult or complex areas where additional clarification of what we expect of firms would be helpful. And it is in that spirit that we have published these illustrations which we hope firms will find useful."
The FSA has drafted these good practice illustrations in collaboration with the industry using feedback from a 'working group' that met twice during December 2007.
Under the TCF initiative, firms are expected to have appropriate Management Information measures in place by March 2008. They will be expected to demonstrate to themselves and the FSA they are treating their customers fairly by December this year.
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