ABI Guide to Good Practice for Unit Linked Funds

Further to the consultation Process, the ABI has now issued a revised guide to good practice in unit linked funds.  From a quick run through the tax sections nothing substantive has changed since the draft guide that was issued prior to consultation.  So the overall position remains that there is little in the way of clear guidance.  (For instance the guide does get in to the nitty - gritty of two year carry backs for deemed gains or what to do where the shareholder benefits from CGT losses in a unit linked fund that are not reflected in the price of that fund.)

There is however, quite a bit about documentation required and I would suggest that firms should be looking at what formal documentation they have on allowing for tax in the unit price and considering whether this meets the good practice guidance.