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
Many firms "had not implemented assessments meeting the minimum consideration requirements and several practices fell short of our expectations"
Image:

Many firms "had not implemented assessments meeting the minimum consideration requirements and several practices fell short of our expectations"

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

  • 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

Liz Truss is 32 points ahead of the former chancellor Rishi Sunak in the latest survey of Conservative party members.

Truss weighs plans to merge top financial regulators - reports

Financial regulation overhaul

clock 18 August 2022 • 2 min read
FCA accused of 'hanging investors out to dry' in Panorama documentary

FCA accused of 'hanging investors out to dry' in Panorama documentary

Focus on Blackmore Bond collapse

Jenna Brown
clock 17 August 2022 • 2 min read
The main risk warning rules come into force on 1 December 2022, with the remainder landing on 1 February 2023.

FCA warns alternative investment firms of increasing scrutiny

New risk warning rules due in December

clock 10 August 2022 • 2 min read
Trustpilot