Calls on FCA for greater transparency as investors could be unaware of closet tracker compensation

Asset managers paid out £34m to investors

clock • 4 min read

The Financial Conduct Authority (FCA) is under pressure to reveal more details about the payment by asset managers of £34m in compensation to investors who overpaid for 'closet tracker' funds, as it is revealed some consumers may not even know they have been reimbursed.

The FCA told Investment Week that if there was a direct payment to individuals they would have been contacted by the provider, but where the compensation is paid into the funds they would not necessarily be made aware of a payment. In addition, the regulator is currently not revealing how many investors have been reimbursed or which asset managers and funds are involved. Adrian Lowcock, investment director at Architas, said greater transparency was required "not to apportion blame but to create confidence in the system". "The issue of closet trackers has been hanging over the indus...

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