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FCA Study on the Asset Management Market

The FCA recently published a study on the Asset Management Market. The findings are clear and unforgiving on the industry. Included are:

  • The duty on fund managers to act in the best interests of investors and introduce independent scrutiny of this
  • Price competition is weak
  • A lack of relationship between charges and the gross performance of retail active funds
  • Active and passively managed funds did not outperform their own benchmarks after fees
  • Investors’ awareness and focus on charges is mixed and often poor

https://www.fca.org.uk/publication/market-studies/ms15-2-3.pdf?dm_i=43MW,22GR,4X0HS,88BZ,1

The study recommends a package of remedies which, not coincidentally, are already an integral part of the ALPIMA platform. These include:

  • visualising past, present and future performance including standardised disclosures of all costs and charges
  • defining clearer and more user based objectives, including how performance is presented
  • customizing strategies around specific client needs

Our new generation B-2-B platform is focused on digital and rule-based investing. We are working with some of the largest and most prestigious asset managers in the world. Please contact us to discuss how we can help.