Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), said imposing a fee cap on investment funds would be a measure of 'last resort', as it is not an effective way to drive competition in the market.
During a press conference on the FCA's Asset Management Market Study released today, Bailey (pictured) highlighted the key issues identified by the regulator as it investigated the industry's ability to effectively control costs incurred on behalf of investors. In the interim report of the study, the regulator found "weak price competition" in a number of areas of asset management and has proposed an all-in fee on funds. Previously, it had been rumoured the FCA was considering a cap on fund managers' charges, but the regulator has steered away from imposing this measure. Bailey sai...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
