Five groups most at risk in the FCA asset management report
27 Jun 17
With the final report from the FCA’s market study of asset management due on Wednesday morning, speculation is rife about what the long-awaited recommendations could say.
We look at the five groups who could face the repercussions.
Rating agency Morningstar was pinpointed for criticism from the FCA in the interim report last November.
The regulator slammed its badge system, which ranks funds on a gold, silver, bronze or neutral badge to help investors gauge comparative performance, claiming the highest rated funds “do not significantly outperform their benchmarks net of charges.”
It added “net of fees excess returns are statistically indistinguishable from zero over various different holding periods”
While Morningstar hit back at the criticism saying it was based on a flawed analysis of fund performance, could the FCA’s focus mean the agencies could face changes from Wednesday?
Tags: Asset Management | FCA
