Regulation
European Equivalence
Economic Secretary to the Treasury, Bim Afolami, announced that the European economic area (EEA) states will now be considered “equivalent” under the Overseas Funds Regime (OFR) for UCITS, excluding money market funds. The announcement, made in a statement to MPs on 30 January, will allow EEA states to apply for permanent market access to the UK. This has also led to speculation that funds domiciled in the EEA will not have to comply with additional UK rules including the Consumer Duty.
It is worth reviewing the wording of the statement made by the Economic Secretary noting that secondary legislation will be required and that the Government does not “intend to require the funds … to comply with any additional UK requirements … at this time”. Further reporting can be found in the Financial Times (FT) and Investment Week.
Pushing back on greenwashing
The Investment Association (IA) has called for the Financial Conduct Authority (FCA) to delay the anti-greenwashing rule, due to come into force on 31 May 2024, until the naming and marketing rules come into effect in December, according to Ignites Europe.
Another retail review
The EU’s ‘troubled retail investment strategy’ is being discussed again in the European Parliament, Ignites Europe reports. This is ahead of a vote on the strategy in March.
AoV interest
New research from Boring Money shows a gradual increase in fund investors reading assessment of value reports. FBC’s Brandon Horwitz also comments in the Ignites Europe article about the impact Consumer Duty will have on these reports too.
Market News
Trust sector shrinks
New analysis from Deutsche Numis has revealed a shrinking in the trust sector by £6.7bn last year. Read why in Citywire.
Fee squeeze
The FT raises the question of whether our industry is adapting to fee-compression – a good review of asset management company stocks, ending with the question: Would active asset managers pick their own stocks right now.
Governance
Kirk’s column
Stuart Kirk airs his views on corporate governance and the relationship with financial returns in his FT column. An interesting debate – look out for more on this from FBC in the coming weeks.
The right mix?
FBC’s Catherine Battershill comments on the right mix of skills on a fund board – find out her thoughts on the ‘two camps’ in Ignites Europe’s Fund Director Briefing.
People
EdenTree Investment Management has appointed Will Oulton, formerly global head of responsible investment at First Sentier Investors, as chair of its responsible investment advisory panel. Portfolio Adviser has the details.
The Association of Investment Companies (AIC) announced new board appointments at its AGM on 31 January. Read all the details here.
Several of the news outlet cited in this blog require registration or subscription. Also, FBC takes no responsibility for the accuracy or quality of the news in the links provided above, and nor are the views and comments representative of FBC or its members, unless expressly stated. Content stored on the FBC portal is freely accessible for FBC members.
