Asset managers must assess value they offer investors under strict new FCA rules
Asset managers will have to prove their value for money
Asset managers must assess each year how much value for money they offer investors, Britain’s markets watchdog said on Thursday, stopping short of tougher measures called for by critics of the 7 trillion pound sector.
The Financial Conduct Authority (FCA) said asset managers would have 18 months to prepare for a requirement from September 2019 to make an annual assessment of value, as part of their duty to act in the best interests of investors.
In a requirement that will take effect six months later than originally indicated, asset managers will have to publish their value assessments and show if any corrective action was taken if charges were identified as not being justified.
Read more UK services sector felt the chill from the Beast from the East After pressure from industry, the value for money idea floated in last year’s review has been broadened to overall value to avoid what the FCA says is too much focus on costs.
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