The Tax Incentivised Savings Association (TISA) is attempting to pull together industry stakeholders in a bid to dissolve the controversy surrounding distributor-influenced funds (DIFs).
Although it is claimed they can provide better governance and financial value, TISA has highlighted the complexity, cost, transparency and suitability issues that surround DIFs.
The organisation held an open meeting last week to discuss DIFs, which can be set up by advisers in conjunction with product and fund providers, and the FSA has also indicated it will take more interest in their usage.
Malcolm Small, director of policy at TISA says: "DIFs are now firmly in the regulatory spotlight but the industry has the opportunity to resolve the questions currently being asked and to provide solutions to the satisfaction of the regulator.
"We have experience at TISA of bringing the industry together on issues of mutual concern to agree on what needs to be done and the best way of doing it in the interests of both the consumer and providers/distributors.
"If we are able to develop a DIFs solution accepted by all, then this should avoid the need for any prescriptive regulation."
TISA will hold a further meeting involving all the relevant sectors of the industry to agree the next stage in the delivery of an industry DIFs solution.
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