The FCA continues to engage with the asset management industry on new European regulations as questions remain over how firms should report costs and charges.
After over a month since Mifid II and Priips came into force, concerns have been raised on how fund fees, in particular transaction costs, should be calculated under the two regulations as lack of standard practice makes like-for-like comparison difficult.
Money Marketing understands asset managers are holding conversations with the FCA on how costs reporting rules are implemented as well other Mifid II requirements.
As Mifid II rules around fee disclosure take effect, research found some fund managers’ costs have been shown to increase at least two times beyond the ongoing charges figure.
In an interview with Bloomberg in September, FCA chief executive Andrew Bailey discussed the impact of the new regulation on firms saying the “all-in fee” measure suggested in its recent asset management market study would not come as a radical shake-up for firms as EU regulation is already mandating similar requirements.
He said the FCA was eager to have “a constructive dialogue” with the industry to come out with solutions on fees reporting.