Chancery Lane chief executive Doug Brodie has written to the Financial Conduct Authority (FCA), calling on the regulator to redefine risk classifications to better reflect income needs.
Brodie said he wanted the FCA to view income and capital as separate retail products. He also said there was no correlation between equity market risk to capital and the stability of dividends. "We need to stop just communicating total return payments and show Joe Public what the income will look like," he said. Observing that capital volatility of long-term assets masks the stability found through steady dividend streams, he said the broader funds industry is doing investors a disservice by not addressing this issue. "Telling an 80-year-old, who doesn't work, that they have to sit...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes