Asset managers await City watchdog’s final industry report after closing comments on interim recommendations
The City watchdog today closed the consultation on its interim asset management market study report and will release its final recommendations in the second quarter of this year.
The Financial Conduct Authority (FCA) published its interim report in November, criticising weak price competition, transparency issues, conflicts of interests and sustained profitability of asset management companies.
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The body suggested an “all-in fee” approach, whereby charges are quoted so investors can see where their money is going, and the setting of clear objectives could help tackle the perceived issues.
Fund management industry body the Investment Association noted in its response that the sector is already running initiatives to introduce further transparency.
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Meanwhile, some individual asset managers argued against the “all-in fee” proposal.
Vanguard, for instance, said that there should be a “health warning” on fees, but argued against the more radical change.