FCA launches second consultation on transparency of fund objectives

Will assess use of benchmarks

Beth Brearley
clock • 2 min read

The Financial Conduct Authority (FCA) has launched a second consultation on the back of its Asset Management Market Study into the transparency of fund objectives and the use of benchmarks.

Following the consultation the regulator plans to publish guidance on how fund managers should make their funds' objectives "more useful" to investors, such as by avoiding jargon, and will stipulate when a fund needs to disclose that its strategy is constrained relative to a benchmark. The FCA is also proposing that if a fund has benchmarks, they are shown consistently against fund past performance. The working group has consulted on the proposals. Fund managers have until the 5 July 2018 to respond to the consultation paper. Value for money The FCA has extended the implementatio...

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