In a letter to FCA CEO Nikhil Rathi on Tuesday (30 April), the Financial Services Regulation Committee, a newly formed body to oversee UK financial regulators, said the watchdog’s interpretation of retained EU regulations is costing the sector £7bn per year.
The UK’s application of MiFID and PRIIPs requires investment trusts to report costs in the same format as unlisted open-ended funds.
According to the committee, this creates a “falsely elevated” number for aggregated ongoing cost forecasts of funds which are held by investment trusts, giving “misleading” information to investors…