Fund ratings providers have responded to criticism from the Financial Conduct Authority (FCA) in its Asset Management Market Study, saying they play a beneficial role in assisting investors, while passive funds are firmly on their agenda.
In the interim report for its Asset Management Market Study, the FCA found third-party ratings providers' business models could result in investors and advisers not being able to access information that helps them assess investment products. It said some industry commentators and stakeholders have raised concerns about third-party ratings agencies, suggesting some do not offer a whole of market review and have to manage a conflict of interest, where an asset manager agrees to pay the rating firm for a licence. The FCA said: "We have also heard from asset managers who do not pay for a ...
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