Is Competition Working Effectively In The Asset Management Sector?

The Financial Conduct Authority ("FCA") has launched a market study into the asset management sector to assess whether competition is working effectively as far as institutional and retail investors are concerned.

Background

The FCA estimates that, in the UK there are approximately £6.6 trillion of assets under management, with institutional investors (including pension funds) representing around 80% of assets under management and retail investors accounting for just over 19%.

If competition in this sector is not working effectively and delivering value, then consumers may be affected directly through their retail investments or pension funds or indirectly through insurance premiums. The size of the sector also means that even small improvements to the effectiveness of competition could produce significant benefits for consumers.