FCA director: New rules will deliver a fair, open asset management industry
By Christopher Woolard
Last week, the FCA took the next step in improving competition in the asset management industry. We have made new rules and are now consulting on further proposals.
Our asset management market study has been one of the most comprehensive competition investigations the FCA has yet done.
These reforms contribute to an already high volume of regulatory change for asset managers. For those in the industry, this means some fundamental changes.
That’s because these findings matter. More than three-quarters of UK households are saving for, or receiving, occupational or personal pensions that rely on asset managers’ services. The investment decisions people make can have a profound impact on their, and their families’, financial health.
Asset managers are there to look after the interests of the millions who entrust them with their savings. That’s why it’s important the industry works as well as possible, with firms competing on the value they’re delivering, and able to show that they’re effective agents for investors.
The latest announcements are an important milestone on the journey. They follow a period of intensive consultation and engagement on what we found and how we proposed to tackle it. Together, they seek to get asset managers to compete better, give protection to those investors less able to find better value for themselves and help intermediaries be more effective.
They use a range of tools and action including new FCA rules and guidance, independent stakeholder-led initiatives, and a market reference to the Competition and Markets Authority, alongside new European rules.
We expect this comprehensive package of interventions will deliver a significant benefit to all investors and a competitive asset management industry that is fair, transparent, open and accountable.