DBFS Round-Table Discussion – FCA Market Study into Competition

DBFS recently held a round table discussion attended by representatives from a number of leading Fund Managers and Fund Services providers to discuss the implications of the recent FCA market study into competition within the UK’s Asset Management industry. There were some interesting insights into the approach taken by the FCA and it will be interesting to see what action the FCA take once they have assessed all the responses. 


What was interesting to the table was the concept of trying to simplify competition; the terms of reference brought it down mainly to cost, whether that be cost to investors or underlying admin costs, which is not the only aspect.  Organisations were understandably cautious about discussing their responses, and although the IMA did issue a reply on behalf of the industry, most companies replied autonomously. 


The scale and depth of this study indicates that controls will come off the back of it.  What these are is hard to define, and the most recent news is that the FCA may push back publication of interim findings to the fourth quarter of 2016.


The regulator is due to publish an initial report this summer and a final report in early 2017, but this timeline is being stretched by changes at the regulator and the volume of material gathered as part of the probe into anti-competitive practices.  In the meantime companies may want to look into doing some housekeeping on:


·         Funds cost structures

·         Validating the fund investment strategy back to the prospectus

·         Does your current fund range need to be rationalised?


For more information about DBFS roundtable discussions, or for specific detail around the FCA’s competition review, please contact Sammy Ross on +44 (0) 207 332 0300 or Sammy.ross@dbfs.co.uk

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