FCA readies fund charges overhaul as asset managers 'stretch rules'

clock

The chief executive of the Financial Conduct Authority is set to criticise asset management firms for the way they pass on the cost of third party research to clients.

In a speech today, Martin Wheatley (pictured) will say fund managers are "stretching the definition" of rules on what can be charged to clients, costing customers an extra £3bn a year. The FCA is to begin consulting next month on how to reform such regulations, according to the Financial Times. The regulator's research has found up to £500m worth of dealing commission may have been used to access the head of corporations last year. "The way the model is currently working is, because it is bundled, you are effectively spending your client's money when you buy access or research," Wh...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Infrastructure: A good investment gone bad – and then good again?

Infrastructure: A good investment gone bad – and then good again?

'Infrastructure - a victim of a unique set of circumstances'

Darius McDermott
clock 02 May 2024 • 5 min read
Investment opportunities 'differ by client age group'

Investment opportunities 'differ by client age group'

‘Advisers should consider personal circumstances when it comes to investment’

Isabel Baxter
clock 02 May 2024 • 1 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 02 May 2024 • 2 min read