Yesterday, the IMA revealed that the results of the review are now expected to be published by the end of February 2013. The review had already been delayed from its original deadline of the the end of 2011 – first until June 2012 and then to the end of 2012.
Daniel Godfrey, who become the trade body’s chief executive on December 1, said: “I am aware that we had hoped to have clarity on the future shape of the Absolute Return sector by the end of 2012.
“This is an important issue for consumers and, having only taken over as chief executive this month, I want to consider all the evidence and all the options thoroughly before we take any final decision.”
But True and Fair Campaign co-founder Gina Miller reiterated her view that absolute return funds “are being blatantly mis-sold to the public” and said the IMA’s further delay suggests it is failing in its goal of improving financial outcomes for customers.
“Delaying the response to this review does not instil any confidence in the quality of the analysis and investigation that the IMA has undertaken to date, especially given that the FSA warned as long ago as January 2011 and again in March 2012 that consumers may not understand the complexities of absolute return funds and may believe there is an element of capital protection, or guarantee of a positive return,” Miller added.
“While we appreciate that Daniel Godfrey is new to his role as CEO at the IMA and it is vital that the IMA’s response to the Absolute Return review is right, the reality is that this is a £26bn investment sector which is failing to deliver the product that savers expect. Absolute return funds are a mis-selling scandal waiting to happen and urgent action is needed.”
