The Financial Services Authority's (FSA's) decision to abandon the need for investment companies to disclose information on major shareholdings has been welcomed by the Association of Investment Companies (AIC).
To be enforced from March 6th 2008, the AIC believes the new rules take into account the evolving needs of the investment market and serve to maintain consumer protection.
Despite pressure for increased disclosure on shareholdings from the market, such a regulatory requirement is unnecessary given that investment companies are now required to make quarterly announcements on their financial situation, argued Daniel Godfrey, director general of the group.
"The critical factor is that the decision to disclose will now be determined by market and commercial needs and not imposed by unnecessary regulation," he stated.
Moving towards principles-based approach, the new FSA listing rules will "maximise UK competitiveness" among investment companies who choose when to list their shares, Mr Godfrey added.
Guidelines on the disclosure of information among businesses owning large private companies were welcomed by the AIC last month, but Mr Godfrey argued that private equity firms should not be "singled out for special attention.
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