The UK’s Financial Conduct Authority (FCA) has proposed changes to listing rules for investment trusts to strengthen shareholder protections. This move follows a series of campaigns by U.S. activist investor Saba Capital targeting the sector.
Background
Saba Capital has been active in the UK investment trust sector, succeeding in ousting the board of Edinburgh Worldwide Investment Trust in April and replacing it with its own nominees. The FCA’s proposed reforms aim to manage conflicts of interest involving activist investors and ensure minority shareholders are protected.
The proposed changes are open for feedback until August 16. The Association of Investment Companies, representing investment trusts, has welcomed the FCA’s proposals, stating they would strengthen investor protection, particularly when a substantial shareholder like Saba Capital seeks to replace the board and become the manager.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
