The FCA has released its report on the thematic review of the governance of internal linked funds. The report can be found at
Paragraph 2.3.4 of the report is about tax in unit linked pricing.
A few headlines
- Twelve firms were included in the thematic review and the report states that improvements in the calculation of tax in unit linked prices were required in "just under half of the firms reviewed" (or 5 as its more commonly known).
- The issues identified were consistency across different types of funds and the treatment of losses.
- Seems that fund of funds are a particular concern to the FCA. (There's a specific example of an inconsistent approach to taxation in a fund of funds).
- The ABI has committed to add more detail to its ‘Guide to good practice for unit-linked funds’ in light of the findings of the thematic review.
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