Impact of the FCA's Asset Management Study Final Report and Consultation Paper

News

20.07.2017

The FCA recently published the Final Report of the Asset Management Market Study which sets out its findings and proposed remedies. Overall the Final Report reflected the FCA's Interim Report which we have previously covered.

Key findings from the Final Report were:

weak price competition;
no clear link between a fund's performance and its charges;
lack of clarity of investment objectives;
concern regarding the role of investment consultants and other intermediaries.

To address these concerns, the FCA details a number of remedies in the Final Report including several areas which it regards as requiring further work. The FCA has also issued a Consultation Paper CP17/18 which sets out proposals for remedies in the following areas:

improving fund governance;
ensuring investors are in appropriate share classes;
changes to the box management rules.

This article, found here, focuses on CP17/18 and the implications for the asset management industry.

If you require further information on anything covered in this briefing please contact Grania Baird (+44 (0)203 375 7443) or Fiona Lowrie (+44 (0)203 375 7232) or your usual contact at the firm on 020 3375 7000. Further information can also be found on the Compliance & Regulatory page on our website.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.