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FCA reveals consumer research costs for asset management study

FCA05The FCA has spent nearly £150,000 on external parties who have provided services in relation to its interim study on competition in the asset management industry.

A Freedom of Information Act request by Money Marketing reveals the £148,672 bill covered the consumer research which the FCA commissioned for the damning 200-page study, which hit out at high fund charges and poor returns from active managers.

The resources were also spent on the services of a contractor who provided econometric support on the study, the regulator says.

In addition to these costs, in January, Money Marketing revealed the FCA spent at least £38,791 on other academics and consultants who advised on the interim report, which included academics from Cass Business School, Said Business School, Newcastle University and University College London.

The FCA’s study was launched on 19 November 2015 and the interim results were published on 9 November 2016. The regulator collected the industry’s feedback until 20 February.

The FCA has spent over £1m carrying out the study as of August last year.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. What can you say?

    A survey conducted to determine what constitutes fair charging value in the asset management sector (who will probably continue to charge what they want, as is their commercial right to do so), whilst using external contractors and paid sources, at a cost of over £1 million!

    Seems like a good use of their seemingly limitless resources to me!!

  2. The article suggests that it’s been a waste of money. It is of course healthy to questions, but what is the alternative? If a regulator is going to perform its function, it needs evidence. Should it take the word of businesses only, who by the way spend millions on research each year or buy-in market research?

    We cannot expect to have an effective regulator if it’s not prepared to collect and analyse evidence in order to make informed decisions. Then their decisions would definitely be a waste of money!

    I’m not defending regulators. I’m defending the importance of multi-level research to improve the quality of products and services offered to consumers and businesses.

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