The UK’s Financial Conduct Authority (FCA) has introduced new rules to ensure that fund managers act in the best interest of investors.

The new rules, which are expected to be rolled out over the next 12 to 18 months, mandate managers to assess their funds’ value against certain prescribed elements every year and be accountable on how they deliver value.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

For the assessment, managers will have to consider charges of the service and its quality.

The new rules require managers to appoint at least two independent directors to their boards.

At the same time, managers will have to improve the transparency on how they profit from investors and support the transition of investors into cheaper fund versions.

FCA executive director of strategy and competition Christopher Woolard said: “The investment choices open to people, and the decisions they make on how to invest, can have a profound impact on their financial health.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“They can also have consequences for their families, as well as society as a whole. That’s why it is important the asset management industry, which looks after the savings of millions of investors, is working as well as possible. But our market study found evidence of weak price competition in a number of areas.”