Closed-Ended Investment Companies: Cost Disclosure

Lord Forsyth of Drumlean Excerpts

Monday 24th March 2025 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her question. I absolutely recognise the key role that the investment company sector plays in the UK’s economy, as she sets out, representing more than 30% of the FTSE 250 and investing in assets that support the Government’s growth agenda. We have listened to industry concerns and, last year, as the noble Baroness said, we legislated to reform retail disclosure. The FCA launched a consultation on an entire replacement regime in December. The Government look forward to seeing the outcomes of that consultation in due course.

[Lord Forsyth of Drumlean (Con)]

My Lords, what is going wrong when Parliament—and all credit to the Government for acting on this matter—and the Government pass a statutory instrument and the regulator then puts out a consultation document that provides for reversing what the Government have said should happen and what Parliament has decided? I know that the Minister must be aware of the number of Peers and others who have written on this matter. Surely the regulator is accountable to Parliament and the Government and should behave accordingly.

[Lord Livermore (Lab)]

I absolutely recognise the issues that the noble Lord raises. The Government’s view is that now that they have temporarily removed investment trusts from cost disclosure requirements, implementation is a matter for the industry. I recognise that there are some frustrations among the sector, but we believe that operationalising this legislation is a matter for the industry and the regulator.