27th Jan 2024
1 minute read

Shining a Light on Disclosure

A failure by a fund manager to disclose material information occurs when the manager fails to provide important information that may affect an investor’s decision to invest in a fund or the value of their investment. Material information can include financial performance, investment strategies, risks associated with the fund, and any conflicts of interest that the fund manager may have.

If you suspect that a fund manager has failed to disclose material information, here are some steps you can take:

 

  • Review the fund's prospectus and other documents: The fund's prospectus and other documents should provide information about the fund's investment strategies, fees, risks, and other important information. Review these documents carefully to ensure that the fund manager has provided all required information.
  • Check regulatory filings: Fund managers are required to file various reports with regulatory agencies.
  • Speak with the fund manager: If you have concerns about the fund manager's disclosure practices, consider contacting them directly to ask questions and seek clarification.
  • Report your suspicions: If you believe that the fund manager has failed to disclose material information, report your suspicions to the appropriate regulatory agency, such as the FCA
  • Consult with a legal professional: A legal professional can help you understand your rights as an investor and advise you on any legal action that may be necessary.
  • Consider switching to a different fund: If you are not comfortable with the fund manager's disclosure practices, you may want to consider switching to a different fund that provides more transparent disclosure.

In conclusion, a failure by a fund manager to disclose material information can be a serious issue that can harm investors. By reviewing the fund’s prospectus and other documents, checking regulatory filings, speaking with the fund manager, reporting suspicions to regulatory agencies, consulting with a legal professional, and considering switching to a different fund, investors can take proactive steps to protect their investments and hold fund managers accountable.