The Financial Services Authority (FSA) has published a set of good practice illustrations for managers of UK collective investment schemes (CIS) to clarify how they should treat their customers fairly.

The illustrations provide examples as to how CIS managers can meet the requirements to collect management information in two specific areas – identifying their target market and reviewing how their products are actually being distributed – under the Treating Customers Fairly Guidance.

FSA asset management sector leader, Dan Waters, said: "The CIS industry in the UK is subject to a unique set of regulatory requirements under the COLL sourcebook and also provides products the great majority of which are sold through distribution channels not controlled by the CIS Manager.

"When we published the TCF Guidance last July we said there were likely to be some difficult or complex areas where additional clarification of what we expect of firms would be helpful. And it is in that spirit that we have published these illustrations which we hope firms will find useful."

Under the Treating Customers Fairly initiative, the FSA said firms are expected by March 2008 to have appropriate management information measures in place - and by December 2008, are expected to be able to demonstrate to themselves and the FSA that they are treating their customers fairly.

Illustrations are available on the FSA website.

Source: FT Adviser