View more on these topics

Regulator ramps up benchmark rules for fund managers

Fund managers will have to provide more information on the way their funds are run, the FCA has announced today.

The regulator published new rules and guidance to improve the quality of information available to investors in response to its asset management market study last year.

The FCA says managers will now have to explain why or how their funds use particular benchmarks and reference them consistently across the fund’s documents. If managers do not use a benchmark, investors must be informed how to assess the performance of a fund. Past performance should also be measured against the benchmark.

Additionally, the regular has amended its rules to require that where a performance fee is specified in a prospectus, it must be calculated on the basis of the scheme’s performance after the deduction of all other fees.

Rules for benchmarks do not require managers to use one and those who do use one are not expected to refer to it if it is not relevant to the way the fund is run.

Will the FCA’s new rules shake up asset management?

Rules for performance fees will come into force on 7 August, while benchmark declarations will be required from 7 May for new funds and 7 August for existing funds.

The FCA’s executive director of strategy and competition Christopher Woolard says: “We’re working to make competition work better in the asset management market and protect those least able to actively engage with their investments. Today’s remedies build on those we’ve already introduced and will make it easier for investors to choose the best fund for them and help them achieve their investment objectives.”

The FCA says the industry plays an “important role” in the UK’s economy as more than £1trn is managed for individual investors and £3trn on behalf of UK pension funds and other institutional investors.

Recommended

8

FCA to pay out to banned IFA

The FCA has been ordered to pay out to the ex-chief executive of collapsed IFA Tailormade for the regulator’s conduct during a case against him. According to a decision from the Upper Tribunal, the regulator caused a delay to proceedings in a case in which Alistair Burns was accused by the FCA of pension transfer […]

2

FCA outlines no deal Brexit battle plan

The FCA has today set out how it would use the temporary transitional power in the event the UK leaves the EU without a withdrawal agreement. The Treasury has put forward draft legislation that would make transitional provisions if the UK leaves the EU without a withdrawal agreement. This is intended to minimise the disruption for firms […]

Message-Stephen-OMGI-2014-700x450.jpg

Profile: OMGI’s Stephen Message on running £1bn at age of 25

Most people at the age of 25 have their worries in life but none of those usually concerns running a £1bn fund. Old Mutual Global Investors’ Stephen Message’s experience is different. Now in charge of the £140m Old Mutual UK Equity Income fund, Message says he has been fortunate on the path to his current […]

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg
103

How much are advisers charging for pension transfers?

Defined benefit pension transfer charges are being put under the microscope again as the regulator turns over more potential conflicts of interest. With the British Steel Pension Scheme the latest to dominate headlines and the FCA ready to interrogate further as it extends its review to include all firms authorised to give pension transfer advice, […]

Simon Fletcher

Auto-enrolment: pay attention or pay the price

By Simon Fletcher

As a chief executive officer of a business in the financial services sector, I have been dealing with the introduction of auto-enrolment for our clients for some time, but I can also speak from an employer’s point of view, having to go through the process ourselves.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com