Regulatory spotlight to fall on absolute return funds
Absolute return funds are to be investigated by the Financial Services Authority (FSA), the regulator has indicated.The funds are a relatively new type of investment vehicle, which promise returns despite investing in the stock market.So far, the products seem to have kept their promises - despite falling markets, the seven funds which have been on the market for more than a year have returned an average of five per cent.The products' promises of returns have also swelled investor numbers, with the largest fund on the market growing from £200 million to £1.5 billion over the past 12 months.Speaking to the Daily Telegraph, an FSA spokesman said:"We want to better understand how the funds are developed and what consideration is given at the product development phase to risk management and treating customers fairly; to learn more about the marketing distribution of ARFs; and to assess the role of ARFs within the asset management industry as a whole."
Share this..
Related stories
Bank profits 'cost households £441 each'
Financial marketplace Zopa has estimated that the cost of HBOS and RBS' profits results in a bill to each UK household of £441, marking a ten per cent year-on-year increase.Recently, the banks made their profits known, with HBOS recording a £5.7 billion total and RBS achieving a £9.2 billion profit."The truth is that banks in the UK have let down their customers badly by failing to deliver agai...
Read MorePlastic spending trebles in ten years
Spending on plastic has more than trebled in the UK over the past decade, with £321 billion spent on cards in 2006, according to a new report from Apacs.The UK payment processing association says that of all consumer spending, the amount splashed on plastic now constitutes nearly a third.Spending on debit cards has risen the most over the past decade, with 61 per cent of all plastic spending done...
Read MoreMore questions about UK finances but no answers
The main political parties have been campaigning tirelessly on the TV and in newspapers this week as we approach the general election. However, despite more and more questions about the UK budget, UK government finances and the UK economy we are seeing fewer and fewer answers from the main political parties. It seems that all politicians at the moment are answering a question with another question...
Read MoreGovernment refuses request from councils for additional funding
While the government has been singing the virtues of public services and public spending over the last few days it appears that councils throughout the UK will not receive any more money in the short to medium term. Many councils have asked the authorities about additional finance as their own liquidity and cash positions are coming under strain.
The government has flatly refused to...
Is the credit card industry changing forever?
Today's announcement that Royal Bank of Scotland will be restricting credit card applications to existing customers is a further blow to UK consumers. This follows hot on the heels of a similar strategy announced by HSBC earlier this year and many in the industry fully expect other credit card companies to follow suit. So is the UK credit card industry changing forever?
It would app...