FCA to up Absolute Return disclosure demands

Funds using descriptions such as ‘absolute return’ and ‘total return’ must now clearly specify in their prospectuses’ investment objectives that capital is at risk, while they must also include the period over which they aim to produce a positive return. They must also emphasise there are no guarantees a positive return will be achieved over any time period. The FCA consulted a number of trade bodies before publishing the rules, with the Investment Management Association (IMA) warning last December it was “concerned about the effectiveness” of the proposals. The trade body noted th...