UK watchdog tightens rules for asset managers
Guidelines will simplify communication with clients and curb high fees charged by trackers
London — Managers of £4-trillion ($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) said on Monday. The FCA published a set of new rules for asset managers, saying its review of the market found “weak price competition” leading to lower returns for savers. 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. The latest batch requires fund managers to clarify how performance of the fund is measured, and show that where a performance fee is specified, it must be calculated based on the scheme’s performance after the deduction of all other fees. “Today’s remedies build on those we’ve already introduced and will make it easier for investors to choose the best fund f...
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