The FCA has clearly listened and consulted as today’s remedies are more focused than those proposed in its interim report.
KPMG Head of Investment Advisory, Nick Evans, comments:
“As expected the FCA does believe that the investment consulting industry should be referred to the CMA. Postponing this decision until September, pending further consultation, is almost certainly a delaying of the inevitable. We believe that addressing this issue represents welcome progress in the further professionalisation of the fiduciary management industry.
“Linked to this is the proposal to HM Treasury that investment consultants should be authorised by the FCA in order to provide advice. Given the critical importance of strategic advice to all stakeholders in pension schemes we believe this is a very sensible and important development, as is the continued focus on transparency of fees, performance and value for money.”
Julie Patterson, Head of Asset Management Regulatory Change, KPMG, comments:
“Today’s report is only the end of stage one and we are now at the start of the rule-making process. The FCA has clearly listened and consulted as today’s remedies are more focused than those proposed in its interim report. It is interesting to note that the FCA’s further investigation on distribution has honed in on platforms which does not fully reflect the whole distribution chain.
“We welcome that the FCA recognises more explicitly the new rules on disclosure of fees and charges coming in under MIFID II and the PRIP KID. It’s important that the industry focuses on implementing properly those new rules for both funds and institutional investors. I’m also pleased to see that the FCA will introduce a sunset clause on the payment of trail commission, which comes several years after the introduction of the RDR, and the ability for fund managers to close the old commission-paying share classes.”
Notes to editor:
For further information please contact:
Christina Bridge, KPMG UK
T +44 (0) 207 311 4252
M: +44 (0) 778 950 4905
KPMG Press office
Tel: +44 (0) 207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 189,000 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.