IMA blasts FSA's reduction in yield requirement

Its call comes in response to an FSA consultation paper which proposes authorised funds should continue to publish RIY information. RIY is a measure of the impact of charges on a fund. It takes account of initial and ongoing charges which are measured over a fixed period, usually 10 years. However, the IMA believes the requirement should be scrapped as it brings ‘no apparent benefit’ to consumers and can be potentially misleading when applied to funds. Julie Patterson, director of authorised funds and tax at IMA, says RIY is not a clearly understood measure of the cost of investing. ...