Managers of £4-trillion (US$5.23-trillion) in assets must clearly spell out to customers from May how they measure performance of money invested in their funds, Britain’s Financial Conduct Authority (FCA) announced on Monday, February 4.
The FCA published a set of new rules for asset managers, stating its review of the market found “weak price competition” leading to lower returns for savers, reported The Financial Times.
“We’re working to make competition work better in the asset management market and protect those least able to actively engage with their investments,” said Christopher Woolard, FCA Executive Director of Strategy and Competition.
“Today’s remedies build on those we’ve already introduced and will make it easier for investors to choose the best fund for them and help them achieve their investment objectives,” he added.
It was the second batch of remedies or rule changes following publication of its market study into asset management in November 2015 to improve “value for money” for investors in funds that have been accused of being opaque regarding fees and charges.
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