IMA Review concludes no basis for fundamental restructure of UK CIS Governance Model

IMA has today published the results of its review of the governance arrangements of UK authorised collective investment schemes.

Recognising both the FSA’s move away from prescriptive rules towards principle based regulation and structural changes to the CIS industry over recent years, the Board of IMA established a review to consider whether current rules and practice in relation to the protection of investor interests continue to be fit for purpose.

The review is the most comprehensive look at UK authorised collective investment schemes since the introduction of OEICs in 1998. Its findings indicate that the existing UK governance model for collective investment schemes does not require fundamental restructuring. It does however, make 23 recommendations to enhance the existing model.

Richard Saunders, Chief Executive of the IMA, commented:

“Mutual funds have long been the most transparent of all UK investment products, with the strongest investor protection measures built into their design. This review confirms that the model is a robust one, but is capable of still further improvement. Implementation of the recommendations, which include better disclosure to investors and enhancing the role and duties of trustees, will help ensure that funds continue to serve the best interests of investors in the future.”

See full Review in pdf format.