UK - Fund managers have been urged to rebuild investor confidence rather than wait for an equity market rally to solve their problems.
Outgoing IMA chairman Alan Burton said the industry was in a “regulatory vicious circle” with low public confidence, industry failings and defensiveness feeding off each other.
But Burton – speaking at the annual IMA dinner – warned that holding on for the equity markets to recover could result in a “long wait”.
Burton said: “We need, as an industry, to accept blame where blame is due and not just moan or accept the state of affairs passively.
“If we focus on running our businesses on clear principles and guidelines which are in the interests of all our stakeholders then they all prosper.”
He added that managers must stop churning out unnecessary “flavour of the season” or “me, too” products.
Instead they should look to improve market efficiency and demonstrate that the industry takes its responsibility seriously by positively supporting the Institutional Shareholders’ Committee.
Burton stressed that the fund management industry must live up to its promises.
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).
The Transfers and Re-registration Industry Group (TRIG) has given its support to an initiative which aims to complete occupational pension transfers within three weeks.
Scottish Widows has completed a bulk annuity deal for the Hitachi UK Limited Pension Scheme.