FCA sets out temporary measures to address investment trust cost disclosure concerns

Provision of costs breakdown

Cristian Angeloni
clock • 4 min read

The Financial Conduct Authority will allow investment trusts and any funds invested in these vehicles to provide a breakdown of costs, as part of its "temporary measures" to resolve the cost disclosure issues impacting the sector.

The regulator's move follows concerns raised about the costs and charges disclosure for listed closed-ended funds under EU-inherited requirements, such as PRIIPs and MiFID II, which have made investment trust costs look artificially expensive. In a statement published today (30 November), the FCA acknowledged concerns that cost disclosures under the EU laws "may not result in representative cost information being published". This included the fact that some costs investment trusts are required to disclose are then aggregated into other products, including multi-asset vehicles and fund...

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