Investment trusts could undergo more scrutiny with regards to shareholder protection and conflicts of interest if regulation is updated.
On Friday (27 March), the Financial Conduct Authority published an update on its role with regards to investment trust policy. Under its current review, launched on 3 March, the watchdog is investigating if it needs to elaborate that current rules apply not only to existing investment managers and directors, but prospective ones as well. It also aims to ensure sufficient protection for minority shareholders against conflicts of interest. Listing rules will also be examined to see whether amendments would be "beneficial" to a subset of undiversified investment entities in giving the...
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