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Asset managers tight-lipped over FCA report feedback

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Asset managers and discretionary fund managers are choosing not to go public on their responses to the FCA’s damning report on competition in the asset management sector.

The deadline for firms to submit responses was 20 February. However, at the time of writing only Old Mutual Global Investors, Orbis and Vanguard had publicly shared their views.

The trio urged the FCA to abandon its “all-in fee” proposal. Vanguard advocated development of “a radic-ally simpler” fees template to replace existing disclosure documents.

Fund groups including Schroders have told Money Marketing they have no immediate plans to publicise their feedback on the study, however.

Capital Asset Management chief executive Alan Smith says some firms are unwilling to share responses with the press, while others will not respond to the study at all.

Money Marketing understands Charles Stanley does not intend to give feedback.

The firm’s spokesman said it was holding “a watching brief” on the study because asset management was not “a major part” of its business.

Plan Money director Peter Chadborn has not received the views of its provider, Seven Investment Management, but he applauds its investment services as “very transparent” on costs.

He says a movement towards low-cost funds like Vanguard Life Strategy will be “the direction of travel” as a result of the FCA’s report. He says: “Vanguard is the winner from [the FCA scrutiny] because it is low cost and transparent.”

Read the FCA’s full findings on the asset management market in its interim report here.

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  1. So what do Charles Stanley actually do then if they’re not involved in asset management?

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