FCA launches second consultation on transparency of fund objectives and benchmarks; Unveils fund value rules

Will assess use of benchmarks

Beth Brearley
clock • 10 min read

The Financial Conduct Authority (FCA) has launched a second consultation on the back of its Asset Management Market Study into the transparency of fund objectives, the use of benchmarks and performance fees.

The paper proposes measures to improve the quality, comparability and robustness of information available to investors and seeks to address its concerns that fund objectives "are not as clear or specific as they could and should be". Following the consultation, the regulator plans to publish guidance on how fund managers should make their funds' objectives "more useful" to investors, such as by avoiding jargon, and will stipulate when a fund needs to disclose that its strategy is constrained relative to a benchmark. They should also explain any non-financial objectives they have, for ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Aegon AM launches UK-domiciled global income fund

Aegon AM launches UK-domiciled global income fund

In response to client demand

clock 27 June 2025 • 1 min read
CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

Focus on quality

Charlotte Ryland and Joe Hawkes
clock 26 June 2025 • 4 min read
Almost half of UK investors using social media for financial advice

Almost half of UK investors using social media for financial advice

Many sources 'unregulated and unverified’

Sorin Dojan
clock 23 June 2025 • 2 min read
Trustpilot