The final report broadly confirms the findings identified in the interim report including the finding of weak price competition particularly for retail active asset management services, that fund performance is not always reported against an appropriate benchmark and investor awareness of charges is often poor.
Mahrie Webb, a partner in Simmons & Simmons’ Financial Services team commented: “Overall there will be a sigh of relief for asset managers. This is a really important time for asset managers who are facing a number of key changes to the regulatory and political landscape in which they operate. Whilst we are pleased to see that the FCA has taken a step back for the moment on a number of the aggressive measures outlined in the interim report, our clients remain keen to engage with the ongoing consultation process on key remedies including the concept of disclosure of a single all-in fee which could have major implications for the industry”.
The deadline for responses to the FCA’s consultation paper in respect of some key remedies is 28 September 2017. [More details on the report]https://www.simmons-simmons.com/publications/ck0a91drpcv330b59gavdbqij/270617-fca-asset-management-market-study-publication-of-final-report).