The Association of British Insurers (ABI) has introduced new rules for the reporting of investment fund data.
From 1 September the new rules will cover the reporting of past investment fund data in both the life and pensions sectors.
The changes are designed to ensure greater transparency and will ensure that each fund appears only once in the performance tables.
Firms will now be required to base their main performance data on the fund charge applying to currently promoted funds to new customers (or to remaining policy holders if the fund is closed).
This will prevent firms from using their old price series in past performance tables or appearing more than once in the performance tables through having different price series.
Jeremy Thatcher, chairman of the ABI’s investment classification committee, said:
"These changes will benefit consumers and financial advisers alike, and will ensure that providers of life and pension funds are competing on a level playing field.”
He added: “The ABI has been working on this for some time, liaising closely with the FSA, member companies and other bodies. Although there has been no pressure from the regulator to make the changes, we felt that the move was overwhelmingly in the interests of consumers. We are delighted that the changes are now going to be implemented."To read more about insurance, click here.
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