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.
The investment consultancy industry may be referred to the government Competition and Market Authority by the FCA after it raised fears of a lack of proper competition and potentially big conflicts of interest.
The regulator pinpointed investment consultants, most who do a significant amount of work with pension funds, for a potential investigation in November and is expected to confirm it on Wednesday.
It listed weak demand, the inability to assess the quality of advice given, high barriers to entry for new consultants and the concentrated market share held by existing consultants as key concerns that made an investigation necessary.
In November, the FCA said: “The potential detriment arising in this part of the value chain, the impact that this advice has in determining future returns, the lack of regulatory oversight and the difficulty that institutional investors face in assessing this service suggests that this requires an in-depth investigation.”
Consultants involvement in fiduciary management was also particular concern for the FCA who also proposed to improve standardisation of its price and performance.
Tags: Asset Management | FCA
