FCA has competition concerns in asset management

The FCA has published its interim report in its asset management market study.

The FCA says that the study raises a number of concerns about whether the asset management sector is driving value for investors as there is limited price competition for actively managed funds. 

The FCA has proposed a package of remedies that would increase transparency and help investors identify the best funds and prices. Most of the remedies relate to governance and price transparency and if implemented would entail changes in the way that asset management firms market and sell their products.

The FCA has also proposed making what would be its first ever market investigation reference to the Competition and Markets Authority over what it views as competition concerns in a relatively concentrated investment consultancy market. 

The FCA is consulting on both its proposed remedies and its provisional decision to refer investment consultancy services to the CMA.

The FCA asks for comments to be sent to assetmanagementmarketstudy@fca.org.uk by 20 February 2017. It intends to publish a final report and remedies in 2017.

Source:  https://www.fca.org.uk/publications/market-studies/asset-management-market-study