Financial Conduct Authority launches probe into competition among asset managers
The Financial Conduct Authority (FCA) has launched an investigation into competition among asset managers, it said today.
The study will look into value for money among both institutional and retail asset managers, as well as looking at whether asset managers can control costs "along the value chain", and whether investment consultants have an effect on competition among institutional asset managers.
“Asset managers provide an important economic function, bringing together those with money to invest and companies and governments that need capital. Given the significant role they play in the economy, it is essential that competition works effectively for these services," said Christopher Woolard, the FCA's director of strategy and competition.
“The UK is a world leader in asset management. Our market study aims to ensure that both retail and institutional investors can get value for money when purchasing these services – which we expect to further strengthen the UK’s position as a major centre for asset management.”
The UK is Europe's largest market for asset managers, with £6.6 trillion invested – including £2.1 trillion of pension fund investments, £1.2 trillion in retail and investment products and £400bn in public sector and charity investments.
The investigation will launch in early 2016, the FCA said, with a final report due by early 2017.