The UK’s Financial Conduct Authority (FCA) has called for greater transparency in the asset management sector after a review that concluded that ‘competition is weak’ in the £7 trillion sector.
Fund managers will now be required to act in the best interests of investors and appoint a minimum of two independent directors to their boards, the watchdog said.
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The regulator also called for a single, all-in-fee to investors, as well as consistent and standardised disclosure of costs to investors.
At the same time, FCA suggested that it should be offered regulatory oversight of investment consultants. It also unveiled plans to launch a market study into investment platforms.
The remedial measures will be implemented in multiple stages, with some subject to outcome of consultation.
FCA CEO Andrew Bailey said: “The asset management sector is important to the economy, managing the savings of millions of people and in the current low interest environment it’s vital we help people earn a return on their savings. We need a competitive sector, attracting investment into the United Kingdom which also works well for the people who rely on it for their financial wellbeing.”
