FCA readies fund charges overhaul as asset managers 'stretch rules'

clock

The chief executive of the Financial Conduct Authority is set to criticise asset management firms for the way they pass on the cost of third party research to clients.

In a speech today, Martin Wheatley (pictured) will say fund managers are "stretching the definition" of rules on what can be charged to clients, costing customers an extra £3bn a year. The FCA is to begin consulting next month on how to reform such regulations, according to the Financial Times. The regulator's research has found up to £500m worth of dealing commission may have been used to access the head of corporations last year. "The way the model is currently working is, because it is bundled, you are effectively spending your client's money when you buy access or research," Wh...

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

Partner Insight:  Unlocking value: The essential guide on how to manage the transition

Partner Insight: Unlocking value: The essential guide on how to manage the transition

Schroders' Tim Carr and Ghislaine Perry discuss how to evaluate the need for change, key points to consider when choosing the right investment partner and how to manage the transition.

Schroders
clock 13 February 2025 • 2 min read
Watch Professional Adviser's Working Lunch on the Baillie Gifford American fund - 'The Ostrich, the Index, and Us: seeking exceptional US growth in a top-heavy market'

Watch Professional Adviser's Working Lunch on the Baillie Gifford American fund - 'The Ostrich, the Index, and Us: seeking exceptional US growth in a top-heavy market'

Catch up on the discussion

Professional Adviser
clock 10 February 2025 • 1 min read
Alec Cutler: The swinging pendulum of investor sentiment

Alec Cutler: The swinging pendulum of investor sentiment

Exploring how investors view the ever-changing energy market

Alec Cutler
clock 05 February 2025 • 4 min read