A key consideration for the FCA is not whether active management is generally effective, argues Graham Bentley, but whether it is actually being performed at all - and to what extent it provides value for money
The recent action on so-called ‘closet trackers' by the Financial Conduct Authority (FCA) reminds us MS15/2.3 - aka the Asset Management Market Study - has not gone away. Indeed, the results of the consultation process are due to be published shortly - possibly even by the time you read this. I would be foolish to try and predetermine the regulator's recommendations yet, for all the hundred-odd pages of the report, I am convinced there will be a single key issue at its heart - value for money. The challenges made regarding the efficacy of active management, while understandably provocati...
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