The regulator revealed at the start of March it had reviewed 84 potential closet tracker funds and required 64 of them to make it clearer to consumers “how constrained they are”. Additionally, £34m in compensation was to be returned to investors, while an enforcement investigation is ongoing against one firm.
In an update on its website last week, the regulator revealed 22 of those funds have made improvements and it is working with the remaining 42 funds. “Often, these fund disclosure changes were not material and only required clarification,” the update said.
The FCA also revealed the 84 funds investigated included equity, fixed income and multi-asset products.
“We continue to analyse these types of funds to ensure they are being managed appropriately and have adequate disclosures,” the FCA said.
The update was part of a new page on closet trackers in the authorised and recognised funds section of the FCA website.
When questioned by Portfolio Adviser earlier this month, the regulator refused to say which funds it had taken action against or the criteria it used to determine which funds it deemed to be at fault.
The latest update to the FCA website provides little further information except to say it used “quantitative and qualitative analysis”.
