FSA calls on fund managers to monitor product performance

FSA disappointed by industry's muted response to Ucits III, claiming groups have failed to consider customer needs when designing products

Providers must monitor product performance and inform advisers and investors if it is unlikely to meet required outcomes, the Financial Services Authority (FSA) has claimed. In a speech at the regulator's annual asset-management conference, FSA managing director Clive Briault said this would not mean providers assuming the responsibility of suitable advice from advisers or interacting directly with consumers if that is not their business model. Instead, groups will be expected to ensure that the consumer audience reached is a relevant target market for any specific product. "In more vola...