Proactive Investors - The Treasury says it is working "at pace" with the City watchdog on new rules for investment trusts after a letter from more than 130 financial bigwigs to Chancellor Jeremy Hunt calling for the abolition of legacy European regulations.
These European Union rules, still enforced by the Financial Conduct Authority post-Brexit, are believed to detract £7 billion annually from UK investors.
In its interpretation of the rules, the FCA requires trusts and investment platforms to present running costs separately for investors, but as all trusts are listed on the stock market these costs are already incorporated into the share price, which wrongly makes it appear to investors that they also have to pay these costs directly.
By wrongly inflating investment costs, the letter, which was signed by names including Abrdn's veteran chairman Sir Douglas Flint, has led to reduced investment attractiveness and concerns over foreign takeovers.
The financial community argues that reforming these rules would not only enhance the UK's investment climate but also redirect substantial funds into domestically prioritized sectors without taxpayer expense.
The Treasury acknowledged these concerns, which have been highlighted in the weekend newspapers, with a spokesman telling media: "We recognise industry's concerns and are working at pace with the FCA to reform the UK's retail disclosure regime, including for investment trusts.
"We'll set out further details on these reforms soon."