Mike Walters, Head of Investment Management Regulation, KPMG UK, comments on the FCA’s interim findings of its asset management market study.
Mike Walters, Head of Investment Management Regulation, KPMG in the UK, comments:
“Today’s report is not just another review, it’s a fundamental challenge to the value for money that the active fund management industry provides to UK savers and investors.
“Firms need to think carefully about how to communicate to investors what value they add. I expect to see some consolidation of firms and funds as governance committees, intermediaries and investors increasingly question the level of fees relative to fund performance. But we mustn’t lose sight of the fact that whilst the FCA found that on average the performance of actively managed funds does not represent value for money, many out-perform and some provide access to certain markets passive funds just can’t.
“Today is just the starting point. The options for regulatory remedies proposed by the FCA will have different pros and cons. We will work with clients to explore the best way forward. The wider industry also needs to ask itself questions. We wait to see what further measures the FCA proposes in the distribution market, which could include advisers, platforms and insurance companies.”
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.