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FCA spends £38k on asset management consultants


The FCA has spent at least £38,791 on external consultants who advised on the interim report for its asset management market study.

A Freedom of Information Act request by Money Marketing reveals that five organisations advised on the damning 200-page report published by the regulator in November, which hit out at high fund charges and poor returns from active managers.

University College London professor Michelle Baddeley and Dr Anna Tilba of Newcastle University held contracts with the FCA between April and November.

Professor Tim Jenkinson and Dr Howard Jones from Said Business School and assistant professor of finance at the University of Connecticut Jose Martinez helped with the study between May and November.

Cass Business School also advised.

Cass asset management chair Andrew Clare confirmed he and other members of the Centre for Asset Management Research predominantly helped the FCA on the empirical work undertaken by its staff.

It is understood independent consultant Daniel Godfrey, who was also hired by the FCA in May to advise on the report, was not listed as engaged on the study as he was also working on other policy areas at the regulator.

In August, Money Marketing revealed in total, the FCA has spent over £1m carrying out the study.



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There are 4 comments at the moment, we would love to hear your opinion too.

  1. To MM. Is this £1M actual money that they have paid out or is this the usual calculation based on people hours of staff within the regulator along with external consultants? If it’s the former it is a bit of a red herring as the staff would have been there getting their salaries for other work they would have been doing anyway. If it’s the latter, that is a lot of money to spend on “outsiders” on top of the work done by FCA staff

    • Hi Marty Y,
      The £1m cost covers all time recorded internally for the FCA AM study. This includes analysing responses to the study terms of reference, stakeholder engagement including hosting round tables and bi-lateral meetings, research, data collection, data analysis and governance.
      The £38,791 cost for the consultants was not based on hourly contracts.

  2. Is it not a bit rich to spend quite a large amount of OPM commissioning a report that hits out at high fund charges and poor returns when the FCA itself is responsible for high regulatory charges and manifestly dire returns on those charges (all part of the “sorry history” that Andrew Bailey described shortly after being parachuted into the position of CEO)?

    And are all the people within the FCA supposedly responsible for regulating the fund management industry so ignorant of its workings that the task of analysing whether or not it provides good value has to be contracted out?

    Just what do these people do all day long other than identify faults and failings in others whilst conveniently overlooking their own?

  3. It is interesting to see the FCA – the Governments appointed representative and regulator – practice what they preach – openness – transparency – Value for Money ( whislt this may be the case for the many unsubstantiated numbers of asset advisers included) the Value for Money is not worth the paper it is scribed upon. Second hand opinions from a second rate Government ( and that is being generous) and their appointed representatives. The respsonsibility lies deep within this corrupt and careless Government. Like Teachers, Police Officers, Doctors Prison Officers – the cost of provision has been cut to Bargain De Basement levels. These are operated under the Governments Pyramid Selling Business Strategy – like Banks and Insurance companies this really is the Governments own organised Crime and PONZI Scheme. Witholding money form NHS Teachers Police Prison Officers and the destruction of Independent Financial Advice, by passing it on to pyramid selling scheme companies and their Directors. There is no equality in UK. We find the elderly and the vulnerable being seized upon their welfare benefits frozen or removed – this is quite simply Genocide by the CONservative Party.

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