Orbis UK head: Fidelity fees move is step in right direction

Time to raise quality of debate

In letting fixed-percentage charges become so prevalent, argues Dan Brocklebank, the funds industry has allowed a conflict of interests between clients and managers to persist for too long.

Fidelity International's pivot toward performance-based fees was yet another watershed moment in an eventful year for the UK fund management industry. It follows the Financial Conduct Authority's (FCA) final report in June, which put the industry on notice that investors have been poorly served by prevailing fee models. It is unclear if Fidelity's decision was a direct response to the FCA's report and the details of its new charging structure still have yet to be announced but the direction of travel for the industry is unmistakable and will have wide-ranging consequences. Ultimately ...