The Investment Association releases its analysis report on value assessments

By Ciara Davies

The Investment Association (IA) has released an analysis report on assessment of value reports issued in 2020.

The analysis considered a sample of assessment of value reports issued by AFMs representing around 71% of UK funds by assets under management. The report covers general findings and those related to specific criteria, and makes some initial recommendations for AFMs to consider when preparing future assessment of value reports.

The report outlines what the IA has observed in industry practice in the first year. Based on this, the IA highlights some of the approaches it believes have worked well in light of the FCA’s objectives for the assessment of value, and which firms may wish to consider when assessing their approach to future reports. The IA makes it clear that its recommended approaches should by no means be considered a comprehensive list of recommendations, or a safe harbour standard.

The IA’s recommendations are made around:

• The accessibility and location of reports;
• Setting out a statement or summary comment about the year’s value assessment;
• Using graphics and summaries to make reports easier to follow; and
• Presenting the findings relating to each of the seven minimum criteria set by the FCA.

For further details, the analysis report can be found on the IA's website.