ABI review to improve Life and Pension Fund Sectors

The ABI has launched a review of its Life and Pension Fund Sectors, which categorise over 6,000 unit-linked life and pension funds.

Over £500bn of assets are managed in these funds. The Sectors enable advisers and consumers to compare similar funds on a like-for-like basis, and are independently monitored by the ABI.

The review has now reached the consultation stage, with views sought from across the industry. Jeremy Thatcher, Chairman of the ABI’s Investment Classification Committee, said: “The ABI Sectors are used by many financial advisers and consumers. Our proposals will refresh the Sectors and reflect ongoing market changes affecting life and pension funds. As part of the review, we initiated discussions with the Investment Management Association to work towards the goal of greater harmonisation of fund sector parameters.

“Recent survey work showed that advisers trust the ABI Sectors and value their impartiality. This exercise aims to build on the significant improvements already made to the Sectors, and to deliver maximum benefit to those who use them.”