The Financial Conduct Authority (FCA) in the UK has said that most wealth managers have ‘exceeded compliance’ with MiFID II following supervisory work conducted one year after the legislation was introduced.

However, while the FCA seems broadly satisfied by the work done by ‘retail intermediaries’ such as wealth managers, it notes some firms have interpreted the rules poorly “making like-for-like comparisons of costs and charges difficult.

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“Firms involved in the design, manufacture and distribution of products need to work together to ensure all costs and charges are disclosed properly to customers,” the FCA said in a statement on Thursday.

The supervisory work by the FCA comes just ahead of new rules for ex-post disclosures that are due to come into force in April 2019. 

As PBI reported last month, many firms are turning to technology to alleviate some of the burden of adhering to this regulation. 

Asset managers have a ‘good level of compliance’

“The FCA found that most of the asset managers in its review calculate transaction costs according to the relevant rules and there was a good level of compliance with the documents firms are required to produce,” the FCA said in a press release.

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However, the FCA noted that there were problems in the way some asset managers calculated transactionacosts and how they disclose them.

“The FCA also found that asset managers generally do not disclose all associated costs and charges and where full disclosures are made inconsistencies between documents and website mean consumers can find the information difficult to understand.”