The Consumer Panel has given a cautious welcome to today’s FSA announcement that it is to consult on proposals to create a single regime for the listing of investment entities from the first quarter of 2008.

However, the Panel is concerned that in the meantime – for the next 10 to 12 months – it seems that overseas investment companies will still be able to list under Chapter 14, with lighter obligations than UK based companies listing under Chapter 15. This may yet cause problems as many UK investors may not realise about the different regimes.

John Howard, Chairman of the Financial Services Consumer Panel said:

"We are pleased that the FSA has listened to the Panel, and others, and will now not take forward its proposals to create a two tier listing regime for investment companies. However, we await the detailed proposals to ensure that the overall protection for UK investors is not diluted. We are pleased that the FSA has said that in the interim they will insist on clear labelling to warn investors about Chapter 14 and look forward to seeing that operating in the meantime."

– ends –

MEDIA ENQUIRIES