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Statement of Principles

The timetable for the Statement of Principles was first announced on 28 April 2015. It invited members to be signatories and committed those signatories to publish statements on their websites from 1 January 2016 explaining how they would do their utmost to uphold the Statement of Principles.

On 3 August 2015, the Investment Association published an update which included a list of 25 members who were initial signatories to the principles. A discussion continues between the Investment Association and the industry to progress on technical aspects of implementing the project.

While members are clearly supportive of the principle of putting clients first, as well as all the other principles outlined, a number have expressed concern that the website-based reporting requirement aspect is adding an additional compliance burden, while the purpose of the project has always been to demonstrate to investors the values we hold as an industry.

It is clear now to the Investment Association that the reporting requirement aspect of the Statement of Principles needs further consideration and so the Investment Association is extending the timetable to allow for additional discussion with the industry on these aspects.

In addition, there are ongoing discussions that may change the industry landscape in the coming months, including the FCA’s market study of asset management and the discussions around MiFID II and PRIIPS. These may also influence the way the project should be implemented.

During this discussion period, the Investment Association will not be maintaining a list of signatories and there will be no requirement for member firms to publish statements on their websites.

The Investment Association will report back to the membership when the implementation discussion has concluded.

11 December 2015

Statement of Principles

  • 1. Always put our clients’ interests first and ahead of our own
  • 2. Take care of clients’ money as diligently as we would our own
  • 3. Only develop, offer and maintain funds and services designed to add value for clients and help them achieve their financial goals
  • 4. Maintain and apply the investment and operational expertise needed to meet the objectives agreed with clients
  • 5. Make all costs and charges transparent and understandable
  • 6. Disclose to investors the source and value of any other material benefit we receive as a consequence of our role as investment manager
  • 7. Ensure regular, timely and clear lines of communication with clients
  • 8. Set out clearly our approach to the stewardship of client assets and interests
  • 9. Maintain a corporate culture that sustains these principles
  • 10. Work with industry colleagues and stakeholders to develop and maintain guidance on industry best practice