London — Britain’s markets watchdog announced radical changes to the country’s £7-trillion asset management industry on Wednesday, seeking to improve transparency and value for money for customers. The Financial Conduct Authority (FCA) said it would strengthen the duty of fund managers to act in the best interests of investors and, as in the US, require them to appoint independent directors to their boards. Fund managers would also come under the FCA’s individual accountability regime, making it easier to punish them when rules are not followed. The reforms in a 112-page report follow an initial study last November that found a lack of competition and high profits for the industry. The FCA will now consult on how best to implement its plans. "This is really a major piece of work. It’s a major step forward," FCA CE Andrew Bailey told reporters. "We have put together a comprehensive package of reforms that will make competition work better and help both retail and institutional invest...
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