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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