Armchair Critic: What does the FCA's Asset Management Market Study mean for advisers?

Price is not everything

clock • 5 min read

The FCA's Asset Management Market Study may be written as a consultative document but it has the look and feel of a foundation for regulatory initiatives - so best take it seriously, warns Professional Adviser's Armchair Critic Brendan Llewellyn

If you want a 30-second version of the Asset Management Market Study, published last month by the Financial Conduct Authority (FCA), how about this? "This £7 trillion industry takes no investment risk, offers its opaque services at too high a price, underperforms and makes too much profit from its own uncompetitive market. Fund ratings do not quite work and investment consultants cannot predict prospective outperformers." There is a suggestion we move to a single all-in price for funds. In principle - the simpler the better. These ever changing three letter TCO/OFC/etc. are no use. Yo...

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