FCA has published the final findings from its asset management market study. It has considered the responses it received following its interim report and is now proposing a package of remedies falling into three broad categories:
- protection for investors who are not well placed to find better value for money;
- driving competitive pressure on asset managers; and
- improving the effectiveness of intermediaries.
Among the specific proposals are:
- using the SMR to bring individual focus and accountability to fund managers to help strengthen the duty to act in the best interests of investors;
- requiring at least 2 independent directors on a fund manager’s board;
- supporting a single, all-in fee disclosure requirement and a consistent and standardised manner of cost and charge disclosure to institutional investors;
- carrying out a market study into investment platforms; and
- asking Treasury to bring investment consultants within the regulatory perimeter.
FCA has published a consultation paper on:
- rule changes to implement its plans in terms of investors’ best interests;
- clarifications to its guidance on how fund managers should approach moving retail investors in pre-RDR share classes into better value classes;
- requiring fund managers to pass back to the fund box profits that have been generated without taking any market risk;
- whether it should introduce an end to trail commission payments; and
- whether it should apply these remedies to other retail investment products.
The consultation closes on 28 September.