FCA chief executive Andrew Bailey has defended the regulator’s plans to introduce an all-in fee for asset managers, saying that the move would make the City more competitive.
The FCA laid out plans for an all-in fee in its recent asset management market study.
Asked if it was likely that asset managers would have to disclose an all-in fee, in an interview with Bloomberg, Bailey said: “We are talking to the industry about that. Interestingly there’s a lot of disclosure in the Mifid and Priips regulations so quite a lot of actually what we have put forward and identified is already there in EU regulation so its not actually as radical as sometimes its presented.
“We do support transparency…We are very happy to have a constructive dialogue with the industry to come out with some sort of solutions. But yes we are strong supporters of transparency and we do think this is a sensible thing in the interests of investors…This will make London more competitive because we think investors want to operate in that environment.”
Bailey also discussed the impact of forthcoming Mifid II regulations and Brexit.
While he said that the FCA was “not finding instances of deliberate refusal to help” when discussing Mifid II implementation with firms, he urged companies not to “turn up on our door on 3 January and tell us to solve the problem in a morning.”
After the UK withdraws from the EU, Bailey said the UK’s rules would stay as “like for like” as possible with what is laid down in Mifid II.
He said: “We are obviously implementing Mifid II as a member of the EU. We made that very clear from the day after the referendum pretty much that as long as the UK remains a member of the EU the UK has to go on implementing EU law.
“We are not going to say to firms guess what you will have to go through Mifid II implementation again. That’s not our objective.”
EU regulation is often seen as rules-based, compared to the principles-based stance of the FCA, but Bailey said this does not mean there will be wide-scale deregulation in the UK once it has the opportunity to break from EU directives.
He said: “I’ve been very clear all along, and fortunately there is broad consensus on this, this is not about deregulating and having a free for all in the UK. We have been through a global financial crisis. We have had some very difficult experiences.The regulatory framework we put in place is a response to that. No regulatory framework is perfect but its been a response to that.”