The UK's financial regulator, the Financial Conduct Authority (FCA), has unveiled plans to tighten rules for investment trusts following criticism of its handling of a high-profile raid by US hedge fund Saba Capital.
The FCA has faced accusations of failing to adequately protect investors after Saba Capital, led by Tom Harris, carried out a series of aggressive trades on investment trusts, causing significant losses for some investors.
The regulator's new rules, which are set to be implemented in the coming months, will aim to improve the transparency and accountability of investment trusts, as well as enhance the protection of investors.
The FCA's proposals include stricter requirements for investment trusts to disclose their holdings and trading activities, as well as increased scrutiny of their management boards.
The move is widely seen as a response to the Saba Capital raids, which highlighted the need for greater regulation of the investment trust sector.
The FCA's plans are expected to have significant implications for UK savers, mortgage holders, and investors, who will be closely monitoring the impact on their portfolios.