Sheila Nicolls' recent comments around transparency and promotion of ETPs is a clear signal that the FSA is not just talking, but actually taking a more ‘interventionist' approach.
TCF Investment suspects the whole index product movement welcomes this - the more clarity the regulator can provide around best practice communication the better. However, the FSA's comment that ETPs are only a small part of the market is already out of date. Anecdotal evidence suggests index fund sales (ETF and mutual funds) in the retail market have already overtaken active fund sales in the UK in recent months. This is supported by evidence from various stock broking platforms that are seeing rapid growth in ETF sales. The industry is already responding with improved product ...
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