Assessment of Value regime called into question as fund closures remain stagnant

133 closures in 2021

Kathleen Gallagher
clock • 4 min read

Fund pickers and research firms have called into question the success of the Financial Conduct Authority’s Assessment of Value (AoV) regime, as the number of fund closures has remained the same over the past ten years.

Figures from Morningstar for Investment Week showed that since 2012, the average number of fund closures has been 146, with the highest in 2012 at 191. The figures further showed that last year was below the ten-year average at 133, despite the fact the FCA introduced AoVs in 2019. AoV reports were one of the remedies from the regulator's 2017 Asset Management Market Study, which found evidence of "weak demand-side pressure" and "lack of competition". The regime requires firms to consider seven prescribed criteria to assess the value of their funds and publish the results annually. At...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Neil Woodford makes YouTube and Instagram appearance with investment channel

Neil Woodford makes YouTube and Instagram appearance with investment channel

Woodford Views is being pushed out across social media

Eve Maddock-Jones
clock 11 November 2024 • 2 min read
Global investors doubt Labour's Budget will make UK markets more attractive

Global investors doubt Labour's Budget will make UK markets more attractive

Government-led investment track record 'is not great around the world'

Sorin-Andrei Dojan
clock 11 November 2024 • 4 min read
Investors bet on slower pace of rate cuts from Bank of England

Investors bet on slower pace of rate cuts from Bank of England

25 basis points cut confirmed on Thursday

Sorin-Andrei Dojan
clock 08 November 2024 • 3 min read