IMA hits out at FSA's "misleading" RIY requirements

In response to the regulator's consultation paper on RIY, the IMA asserted that the requirement is redundant and moreover can be misleading when applied to funds, and should ergo be abolished. RIY is a measure of the impact of charges on a fund which takes account of both initial and ongoing charges and monitored over a fixed period. Julie Patterson, director of authorised funds and tax at the IMA, pointed out that RIY is not a clearly understood measure of the cost of investing. She explained: "RIY is calculated over fixed periods of time so it will generally not be the same periods ...