No end in sight for IA sector review

No end in sight for IA sector review

The outcome of the Investment Association’s (IA) sector review, launched a year ago, is to be pushed further into 2016 as the trade body continues its examination of consumer and adviser needs.

The IA said it was still investigating whether to create a new sector for outcome-focused funds, or to overhaul its entire classification system. It is thought that a solution is not on the immediate horizon.

The trade body has been reluctant to publish any details until it is sure all aspects of its proposals have been scrutinised.

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IA director for capital markets Galina Dimitrova said the organisation was making good progress, but hinted that sticking to the status quo – wherein 475 funds are grouped in the Unclassified sector, of which almost half are outcome-oriented products – was still an option.

“We recognise that the numbers of these products are continuing to rise,” Ms Dimitrova said.

“We would like to conclude this project as soon as possible to cater to their investors, but not before we are convinced that we can move towards a system that will be clearer and more transparent to savers.”

Fund selectors such as Square Mile’s Richard Romer-Lee and Harwood’s Richard Philbin said they remained sympathetic over the IA’s mammoth task of refocusing the sectors, particularly after the upheaval seen at the trade body during the past six months.

Dennis Hall, managing director at Yellowtail Financial Planning, added “politics” would have slowed the process down.