IMA 'unfit to classify sectors', says think tank

clock

A paper being reviewed by the House of Lords has launched an attack on the Investment Management Association (IMA), saying it is ill-equipped to decide on sector classifications, and the job should fall to a more impartial body.

Michael Johnson, author of the paper and research fellow at the Centre for Policy Studies, criticised the IMA for not being able to categorise funds fairly. "The IMA is an industry body and is paid to represent industry members. It is not impartial in categorising funds because ultimately its interest is attracting more business to the industry," he said. Johnson referred to the recent industry criticism of the Managed sector categories for being unclear and misleading, as an example of the flawed nature of the classifications. The IMA moved to reclassify the sector at the end of last...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Partner Insight: Beyond 60/40

Partner Insight: Beyond 60/40

Invesco
clock 25 March 2024 • 5 min read
'Fundamental shift': Why transparent investing really matters

'Fundamental shift': Why transparent investing really matters

‘There needs to be a concerted shift towards greater openness’

Simon Camilleri
clock 18 March 2024 • 4 min read
Partner Insight: Passive and active — the case for both

Partner Insight: Passive and active — the case for both

Invesco
clock 18 March 2024 • 4 min read