The Financial Conduct Authority (FCA) is understood to be moving away from the idea of putting a cap on fund charges as part of its wider review into competition within the asset management sector.
It will come as a relief to asset managers, who have felt they have taken a lot of pain in the new post-Retail Distribution Review (RDR) world that has been designed to help consumers. Headline fund manager fees have come down, while the overall cost of investing has gone up. Most advisory firms have put up fees where they can and VAT at 20% on services is a big burden. The cost of platforms adds a layer of bureaucracy and complication which may not really justify the fees. I have been confused, ever since the FCA announced it was going to look into competition in the asset management...
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