FCA Announces Terms Of Reference For Asset Management Market Study

Keywords: asset management services, FCA

On 18 November 2015, the UK Financial Conduct Authority (FCA) announced the terms of reference for a long-anticipated market study into the UK asset management industry. The study seeks to understand whether competition is working effectively, enabling all clients to obtain value for money when accessing asset management services. The terms of reference can be found here.

The FCA considers that there are areas of the asset management sector that have not been analysed previously from a competition perspective and that would benefit from investigation.

What will the study examine?

The study will focus upon: (i) distribution (including platforms and investment consultants); (ii) investment products and providers (where such products are sold and managed in the United Kingdom); and (iii) third party service providers (particularly where they are remunerated directly by a fund). The terms of reference pose three main