FCA director: New rules will deliver a fair, open asset management industry

FCA executive director of strategy and competition Chris Woolard

Last week, the FCA took the next step in improving competition in the
asset management industry. We have made new rules and are now
consulting on further proposals.

Our asset management market study has been one of the most
comprehensive competition investigations the FCA has yet done.

These reforms contribute to an already high volume of regulatory change for
asset managers. For those in the industry, this means some fundamental
changes.

That’s because these findings matter. More than three-quarters of UK
households are saving for, or receiving, occupational or personal pensions
that rely on asset managers’ services. The investment decisions people
make can have a profound impact on their, and their families’, financial
health.

Asset managers are there to look after the interests of the millions
who entrust them with their savings. That’s why it’s important the
industry works as well as possible, with firms competing on the value
they’re delivering, and able to show that they’re effective agents for
investors.

The latest announcements are an important milestone on the journey.
They follow a period of intensive consultation and engagement on what
we found and how we proposed to tackle it. Together, they seek to get
asset managers to compete better, give protection to those investors less
able to find better value for themselves and help intermediaries be more
effective.

The fight for value: Will the FCA’s new rules shake up asset management?

They use a range of tools and action including new FCA rules
and guidance, independent stakeholder-led initiatives, and a market
reference to the Competition and Markets Authority, alongside new
European rules.

We expect this comprehensive package of interventions will deliver a
significant benefit to all investors and a competitive asset management
industry that is fair, transparent, open and accountable

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Comments

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  1. Err, didn’t Andrew Bailey concede just a few weeks ago that endless new rules demonstrably don’t achieve the desired objectives? Perhaps Mr Woolard missed that one.

    And how about the FCA attempting to provide some evidence to demonstrate its own value for money?

    Ah, rather sticky one that because, as we know, the FCA doesn’t do Cost:Benefits Analyses, any more than it takes a scrap of notice of the Statutory Code of Practice for Regulators, from which may I quote:-

    Our expectation is that as regulators integrate the Code’s standards into their regulatory
    culture and processes, they will become more efficient and effective in their work. They will
    be able to use their resources in a way that gets the most value out of the effort that they
    make, whilst delivering significant benefits to low risk and compliant businesses through
    better-focused inspection activity, increased use of advice for businesses, and lower
    compliance costs.

    So it’s more of the same, nothing will change and Linda Woodhall’s bunker mentality still prevails.

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