FSA delays disclosure consultation
This article appears courtesy of Global Investor.
By Claire Milhench
The FSA is to delay its proposed consultation with the asset management industry over disclosure for investment products at the point of sale. Speaking at the Institute of Economic Affairs Future of Fund Management Conference on Tuesday, Dan Waters, FSA director of retail policy, said that cost-benefit analysis had demonstrated a complex interaction between the costs and benefits of changes to the discloure regime. "In light of this and the lack of clarity surrounding the final impact of MiFID, we believe there is little choice but to delay the issuing of our Consultation Paper, rather than put forward a set of proposals now that might need to be revisited. Currently we just aren't in a position to know what MiFID is going to say about disclosure at the point of sale."
He added that the FSA would use the opportunity presented by the delays to the MiFID timetable to further refine its proposals for the Quick Guide. This document summarises the key features of investment products, and tested well last summer with consumers and the industry. The aim is to replace the current Key Features Document with the two-sided Quick Guide.