The Investment Management Association has called upon the government to take action that would offer an extra layer of protection to investors .

According to the organisation, authorities should think over the concept of a recognised covered bond scheme, something that would potentially shield investors from low-quality assets .

However, the organisation states that in order for the investment industry to be regulated in this fashion, the plans for the regime's implementation must be re-thought.

Currently, the timeline for introduction is unworkable, the scheme too liberal and overall it risks providing inadequate protection, according to the investment body.

Richard Saunders, chief executive of Investment Management Association, said: The Treasury and FSA [Financial Services Authority] should take time to rethink key aspects of the proposed regime to ensure the necessary quality and oversight in the interests of investor protection.

He added that sub-prime assets could sneak into funds for UK investors under the current regulations.

Meanwhile, FC Investments recently announce that its FC Money Markets fund and FC Sterling Enhanced Cash funds have been offered a AAA and AA rating from ratings body Fitch.