Regulation of investment trust companies: Government response

Resource type: Legal update: archive

Status: Published on 17-Nov-2005

Jurisdiction: United Kingdom

On 17 November 2005 the Government published its response following consultation on the regulation of investment trust companies (for background see Regulation of investment trust companies: HM Treasury consultation). The Government has decided not to pursue the options outlined in its consultation paper (i.e. (1) amending primary and secondary legislation to put the regulation of ITCs on a similar basis to authorised unit trusts and open ended investment companies; (2) amending secondary legislation so that ITCs would be brought within the definition of collective investment schemes and become subject to general regulation under FSMA; or (3) amending secondary legislation so that ITCs are deemed to be carrying on a regulated activity and would therefore come within the scope of Part 4 FSMA) - it has concluded that those options would not result in better regulation than could be delivered using existing FSA rule making powers. It has, however, invited the FSA, as part of its wider review of the financial promotion rules, to consider requiring all financial promotions relating to shares in an investment trust company to warn that recourse to the Financial Ombudsman Service and the Financial Services Compensation Scheme is not available to direct investors.

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  • Resource ID: 6-201-6138
  • Published: 17-Nov-2005
  • Products:  PLC UK Corporate, PLC UK Law Department
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