The FCA has found that some asset managers are still struggling to comply with costs and charges disclosure rules under Mifid II and Priips.
The regulator has published a review today into how effectively asset managers and intermediaries are meeting the new rules, which came into force last January.
It found a good awarness of the rules, but also an “inconsistent” approach to their implementation, which could lead to confusion for customers, who may be misled about how much they are being charged.
The regulator said it is working with firms that are finding the calculations difficult to report correctly.
The City watchdog also said it would share the respondents’ concerns with the European Comission and European Supervisory Authorities to “influence the full review of Priips regulation due in 2019 in an attempt to address concerns raised.”
The regulator said it “continues to believe the Priips are working as intended” and that ant “unrepresentative transaction costs were largely due to poor application of the methodology by firms.”
The FCA said in today’s statement it would “continue to work with firms to increase understanding of the Priips legislation but will take further action if firms do not improve.”
It said: “The FCA will also consider whether further guidance is required in order to address concerns about conflicting requirements and lack of clarity about the scope of application of Priips requirements.”
FCA chief executive Andrew Bailey adds: “Certain aspects surrounding compliance with Priips may risk not leading to good consumer outcomes and we are working with EU institutions to address these.
“We are aware that many firms are finding aspects of the calculations difficult or are making inaccurate calculations. We will work with firms to help them ensure their reporting is accurate.
“We are aware of public claims of an intent deliberately not to comply with the new rules. While we have found some areas of non-compliance with the new rules the claims which have been made regarding this are not supported by the evidence in important respects.”