Industry reacts to FCA study: Fund rationalisation, significant costs and 'immoral' profits

'FCA's finest ever piece of work'

Reaction to the Financial Conduct Authority (FCA) Asset Management Study has indicated "significant cost implications" for the industry and a "renewed amount of fund rationalisations" as firms implement the FCA's proposals.

Key proposals include an 'all-in' fund fee, with four options for how this might work in practice, and improved communication about charges and their impact on performance. In addition, the regulator suggested a range of potential remedies to help investors consider whether to switch away from poorly-performing funds, especially closet trackers. FCA Asset Management Study: Top ten takeaways for retail industry These include the FCA ‘shining a light' on funds with long-term underperformance, or asset managers being required to tell investors when their products are underperforming r...