Rules governing investment trusts are under scrutiny in the Treasury consultation launched today, which seeks feedback on whether the sector should, as recommended by the Treasury Select Committee, fall under the same regulatory umbrella as other investment products.
Investment trusts are currently governed by listing rules and company law, but following the spectacular failure of certain split capital investment trust investments there has been significant pressure to look to new rules offering enhanced shareholder protection. Today’s consultation document suggests four main options to consider regarding any regulatory changes: Amend the FSMA 2000 to put regulation of investment trusts on a similar basis to unit trusts and OEICs – meaning the companies would be regulated both as products and authorised persons, Amend secondary legislation to br...
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