Posted by Christopher Trantham on February 2, 2017
The UK asset management industry manages £6.9 trillion of assets across retail, institutional and pension funds.
The FCA is focusing on value for money and transparency for all investors as small variations in management fees can have a substantial effect on long term returns, particularly for pensions.
The preliminary findings of the FCA study into a sample of the 1,840 authorised firms in the UK market raises concerns over:
The FCA is currently in open consultation on the preliminary findings (closes 20 February) and have proposed a number of remedies including:
If these remedies are translated into new legislation then the burden of demonstrating compliance is likely to fall on the IFA which we see potentially affecting all our clients to some degree. We expect to see further details emerge later in 2017.