An FCA spokesperson said: “We have regularly met with parliamentarians and industry representatives to discuss issues relating to retail cost disclosure and we continue to engage closely with them on this issue. We have received the letter from the Lords subcommittee and will respond.
“We recognise the challenges posed by existing cost disclosure requirements and we took action last year to give investment trusts greater flexibility to explain their costs and charges, however further change requires legislation.
“We look forward to the government and Parliament providing us with the powers to enact these reforms.”
Last month (April 19), FT Adviser reported Baroness Ros Altmann, former pensions minister, and Baroness Bowles, former MEP, had been pushing the regulator and parliament for a 'simple' fix to the problem caused by the FCA's interpretation of European Union rules for investment trusts.
Altmann said: "It is deeply concerning that the regulator is not properly informed about how the market works, even though it is responsible for overseeing it."
tara.o'connor@ft.com
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