What: This response is provided on behalf of the Association of Professional Fund Investors in response to the Financial Conduct Authority (‘FCA’) final response MS15/2.3 to the interim paper MS15/2.2, part of the Asset Management market study, with responses for CP17/18 due by 28 September 2017.
About: The FCA interim report MS15/2.2: On 1 November 2016 the FCA issued a 200-page interim report assessing the state of the £7trn (€8.18trn) strong asset management sector in the UK, the FCA highlighted that investors in active funds often pay higher charges than necessary due to a lack of price competition. In addition, it highlighted that fund objectives were not always clear, and performance was not always reported against an appropriate benchmark. The study focussed heavily on the experience of the defined contribution pension schemes and investment consultant market and charges and performance of active funds. On 28 June the FCA issued its response MS15/2.3 to that consultation and also released CP17/18 for further consultation. The APFI notes the FCA’s observations set out are broadly consistent with the findings set out in the interim report.
Read the full response here.