The Affiliation of Funding Corporations (AIC)has welcomed the elevated emphasis the FCA’s newest coverage assertion “A brand new Shopper Responsibility” locations on product design to ship higher outcomes for traders.
Richard Stone, Chief Government of the Affiliation of Funding Corporations (AIC), mentioned: “We welcome the elevated accountability the brand new Shopper Responsibility will place on companies to make sure the best services are being supplied to prospects. When companies design and evaluate their merchandise they need to think about the outcomes that they’re making an attempt to ship for shoppers.
“Funding firms have confirmed advantages which result in wonderful long-term outcomes for traders. We hope the brand new Shopper Responsibility will encourage extra asset managers to contemplate launching funding firms. We additionally imagine extra advisers want to contemplate funding firms and platforms ought to give them applicable prominence when presenting portfolio strategies to their prospects.”
Funding firms have sturdy long-term efficiency, having outperformed open-ended funds in 12 out of 16 sectors over ten years. They’ve distinctive earnings advantages with 17 dividend heroinvestment firms having elevated their dividends for greater than 20 years. Funding firms additionally present everlasting capital which makes them a super construction for various belongings akin to property or infrastructure.
Final 12 months purchases of funding firms on adviser platforms amounted to £1.3 billion. This was a rise of 23% on 2020. Nonetheless, solely 15% of adviser companies use funding firms, in accordance with knowledge from ISS Monetary Readability.
