FCA's Bailey: Fund fee caps would not effectively drive competition

Proposes all-in fee on funds

Andrew Bailey, chief executive of the Financial Conduct Authority, said imposing a fee cap on investment funds would be a measure of 'last resort', as it is not an effective way to drive competition in the market.

During a press conference on the FCA's asset management market study released today, Bailey (pictured) highlighted the key issues identified by the regulator as it investigated the industry's ability to effectively control costs incurred on behalf of investors. In the interim report of its Asset Management Market Study published today, the regulator found "weak price competition" in a number of areas of asset management and has proposed an all-in fee on funds. Previously, it had been rumoured the FCA was considering a cap on fund managers' charges, but the regulator has steered away f...