The
Financial Services Authority's (FSA's) new listing
rules meet the current needs of the
investment market while maintaining sufficient standards on
consumer protection, according to the Association of
Investment Companies (AIC).
Daniel Godfrey, director general of the AIC, has welcomed the
FSA's new regime that will be introduced from March 6th 2008,
suggesting that it avoids the imposition of unnecessary
regulation.
Investment
companies will be able to disclose information that could be of
benefit to
shareholders, but based on market needs and commercial
interests rather than as a result of a regulatory requirement, he
suggested.
The FSA has been able to balance all of these factors and its
approach will maximise UK competitiveness for investment companies
who can choose where they list their
shares, Mr Godfrey commented.
Given that the FSA has already rendered quarterly reports of an
investment company's financial position, further regulation
calling for disclosures on
shareholdings is unnecessary, he added.
After the publication of the Walker Review last month, Mr Godfrey
welcomed the call for the disclosure of financial information among
firms who have invested in large
private companies, but said: We see no reason why
companies owned by private
equity should be singled out for special attention.
