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FCA to reveal final rules for asset managers

The FCA is to publish its final verdict on the UK asset management market next week.

In its final report on the asset management market, published in June, the regulator proposed a series of reforms, including an “all-in fee” for funds, greater clarity on charges and easier switching into better-value share classes for retail investors.

Along with the report, the FCA launched a consultation paper to gather inputs from firms to implement its “package of remedies”.

The FCA says it will publish a policy statement and changes to the handbook on 5 April.

Following its final report, a working group was set up to focus on how to make fund objectives clearer and more useful, as well as consult on the use of benchmarks and performance reporting.

The FCA says the group will conclude its work early this year with a consultation that will be discussed in the first quarter. The FCA will also consult on benchmark and fund performance reporting in the same timeframe.

The FCA says it continues to support its “all-in fee” proposals that go in hand with the transparency push brought by new European rules, such as Mifid II and Priips.

The regulator says it is testing more effective ways to implement the rules using behavioural patterns, in particular how charges compare and how they impact investors’ investments over time.

The FCA is also considering how information about charges should be presented when funds are bought either through an adviser or directly from a fund manager.

These extra analyses will also by published in the first quarter of this year.

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