We’ve switched our classes to live online. For more Covid-19 updates, click here

FCA to study if investment managers offer good value

FCA to study if investment managers offer good value

The Financial Conduct Authority (FCA) has announced an investigation into whether consumers are being well served by companies investing savings and administering pensions.

The UK's financial regulator wishes to ensure that consumers are getting good value for money from asset managers, as well as professional individuals, who provide financial advice.

Competition

This new inquiry will highlight the issues surrounding how investors choose a manager, and will establish if there is sufficient competition in the sector to allow customers to come to an informed decision giving good value.

Charges and fees will also come under scrutiny, particularly in respect of how well they reflect performance. This follows complaints from consumer groups about the wide variation in fees and the lack of transparency surrounding them.

The FCA's director of strategy and competition, Christopher Woolard, said: "Our market study aims to ensure that both retail and institutional investors can get value for money when purchasing these services."

Industry welcome

The announcement of the enquiry was welcomed by the investment industry.

Interim chief executive of the Investment Association, Guy Sears, said: "We welcome the FCA's decision, alongside its core focus on investment managers, to also consider the role of distributors and investment consultants."

"We agree it is essential the whole investment chain functions effectively for its clients," he added.

The FCA will publish a final report in early 2017, preceded by publication of initial findings in the summer of next year.


Other News

ACCA and CIPM of Nigeria sign a collaborative agreement

According to a recent article by The Guardian earlier this month, the Association of Chartered Certified Accountants (ACCA) and the…

AAT achieve KHDA recognition

We are excited to announce that AAT has been officially recognised as an International Certification Organisation by the Knowledge and…

LSBF Professional Qualifications Campus Re-opening from 1 September

We’re excited to announce that from Tuesday 1 September, our doors will be reopening to students, and we have put…

Back to top