Radical plan for investment trust regulation

Abstract

The paper is about HM Treasury’s consultation on the future of investment trusts regulation. The consultation follows the Treasury Select Committee’s recommendation in 2003 that investment trusts should be regulated by FSA following the collapse of a number of split capital investment trusts. The paper argues that changes made since 2003, to the Listing Rules and the Conduct of Business Rules and the introduction of the AITC Code of Corporate Governance render further structural change unnecessary. The paper also argues that the Financial Ombudsman Service (FOS) should be extended so as to allow thrid party access by complaints who claim to have suffered loss as a result of having relied on a misleading financial promotion, no matter how they eventually purchased the investment.

Citation

Godfrey, D. (2005), "Radical plan for investment trust regulation", Journal of Financial Regulation and Compliance, Vol. 13 No. 2, pp. 121-131. https://doi.org/10.1108/13581980510621956