The FCA has written to 34 fund managers about potential breaches of Mifid II cost disclosure rules.
Under Mifid II, which came into force on 3 January, fund houses must disclose all charges relating to a product to investors upfront.
Responses to Freedom of Information Act requests filed by wealth manager SCM Direct show 34 firms have been notified of potential breaches of the cost disclosure rules.
According to SCM, the FCA data shows no firms have been referred to enforcement for non-compliance with cost disclosure rules.
The data shows the FCA has had six firms self-report non-compliance with the rules and has written to eight other firms.
The wealth manager now says that after receiving its August FOI, the FCA has contacted a further 27 firms about potential breaches of the cost disclosure rules.
SCM says it sent the regulator a dossier “evidencing 50 breaches by major companies” in April and then followed up the next month with a letter stating that the companies continue to fail to comply with the law.
SCM founder Gina Miller says: “The FCA has had numerous opportunities to publicly state that it will take enforcement action against firms that breach new costs disclosure laws and has failed to so.”
In one of the FOI responses the FCA says: “Enforcement is not the only regulatory tool at our disposal, nor is it the most appropriate one to use in every case. The FCA will act proportionately and not take a strict liability approach in relation to enforcement of Mifid II, given the size, complexity, and magnitude of the changes that are required to be in place in firms.”
It says: “This means we have no intention of taking enforcement action against firms for not meeting all the requirements straight away where there is evidence they have taken sufficient steps to meet the new obligations by 3 January 2018 – rather the FCA will work with such firms to enable them to meet the requirements.
It adds: “However, where firms have made no real or genuine attempt to be ready, or where key obligations are deliberately flouted, the FCA will take a much stricter approach.”