FCA warns of potential intervention after damning review of fund value assessments

AoV study reveals widespread failures from fund managers

Mike Sheen
clock • 4 min read

A Financial Conduct Authority (FCA) review of fund managers’ Assessment of Value (AoV) reports has revealed widespread failures in the quality and content of the documents, with the regulator warning it will intervene if firms do not improve.

In the report published today (6 July), the FCA said it expects "more rigour" from fund managers' value assessments, having seen evidence of poor or unsatisfactory assessments of performance and costs, and independent directors lacking "sufficient understanding of relevant fund rules." Fund managers' AoVs will save investors over £30m - reports The FCA urged fund managers to make changes to "address shortcomings" where necessary, with the regulator planning another review "within the next 12 to 18 months" assessing "how well firms have reacted to our feedback". "We will consider ot...

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 Regulation

Deep Dive: 'Confusing' post-Brexit regulation still needs 'ironing out'

Deep Dive: 'Confusing' post-Brexit regulation still needs 'ironing out'

Impact not fully understood

Cristian Angeloni
clock 16 February 2024 • 4 min read
FCA quizzes 20 advice firms on Consumer Duty compliance

FCA quizzes 20 advice firms on Consumer Duty compliance

Focus on ongoing services

Sahar Nazir
clock 15 February 2024 • 1 min read
FCA: More than 10,000 'misleading' financial ads withdrawn in 2023

FCA: More than 10,000 'misleading' financial ads withdrawn in 2023

The watchdog records 17% surge in interventions to protect consumers

Sahar Nazir
clock 14 February 2024 • 1 min read
Trustpilot