These categorise different types of investment fund, allowing consumers and financial advisers to compare funds with similar investment profiles against each other. While the ABI does not collect or publish performance data of individual sectors or funds, the ABI Sector classifications allow other organisations to do just this, for comparison purposes.
Stephen Haddrill, the ABI's Director General, said: "The ABI Sectors categorise similar investment funds, enabling consumers and advisers to compare their performance. However, the current economic crisis has highlighted the need for a fundamental review of the ABI Sectors to ensure that they continue to meet the needs of consumers and advisers as risk changes. That review is already underway, with the strong backing of ABI members.
"The first stage is to examine closely the Money Market sector and propose options for reform. This will be completed quickly. The second stage will look at all the other ABI Sectors.
"This review shows our determination to act in the interests of consumers, and is a positive step forward for customers of the insurance industry and their financial advisers. Alongside it, we have repeated our expectation that all communications with customers about investment funds should be clear and transparent about the types of assets held in those funds and the level of risk they carry."
All relevant bodies will be consulted in the course of the review, including the IMA, FSA, AIFA, consumer organisations and data analysis companies.
