FMA probes performance fees

The FMA has published the findings of a review of quarterly fund updates which looked at whether fund managers were meeting their legal requirements to produce updates that are both easy to find and easy to read for investors.

At least one quarterly fund update from each licensed Managed Investment Scheme (MIS) manager was considered as part of the review.

MIS managers were complying with the general obligation to produce fund updates and most updates did not raise significant concerns, the FMA said.

The review did find some areas where disclosure could be improved or instances of potential non-compliance. In a handful of cases, the fund update could not be found on an issuer’s website. In other cases, it was not sufficiently prominent.