Editor's View: Fund groups must get their houses in order as FCA fires warning shot on closet trackers

Asset managers pay out £34m in compensation

Katrina Lloyd
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Investment Week editor Katrina Lloyd
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Investment Week editor Katrina Lloyd

If they were in any doubt, asset managers have been made painfully aware the Financial Conduct Authority (FCA) means serious business when it comes to tackling the key issues blighting our industry, including dealing with closet tracker funds.

The FCA said over the weekend that a number of asset managers have taken the step of paying £34m in compensation to investors who overpaid for closet trackers following an investigation by the regulator as part of ongoing supervisory work, while another fund group faces enforcement action for "very misleading" marketing material. In an article explaining the regulator's stance, the FCA's director of supervision - investment, wholesale and specialist Megan Butler said the regulator is taking action on asset managers that are not transparent with clients and reminded providers the watchdog...

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