AIC urges FCA action as KIDs research suggests 'nonsense' risk results

When comparing sister funds

Jayna Rana
clock • 3 min read

Research from the AIC comparing investment trust Key Information Documents (KIDs) with their open-ended counterparts suggests OEICs are the riskier product, which chief executive Ian Sayers called "nonsense".

In a bid to persuade the Financial Conduct Authority (FCA) to review KID Summary Risk Indicators (SRIs) sooner rather than later, the Association of Investment Companies (AIC) has compared them to open-ended funds' Key Investor Information Documents' (KIIDs) Summary Risk and Reward Indicators (SRRIs). The results further support the trade body's criticism that consumers are being misled and it has called on the FCA to act now. The AIC found that of the 56 investment companies which had ‘sister' open-ended funds - that is, they share the same manager, strategy and have a significant ov...

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