FCA Asset Management Market Study

FCA Asset Management Market Study

In November 2015, the FCA launched its market study into the UK asset management sector. This was owing to concerns about the effectiveness of the market in providing value for money to institutional and retail clients. Its final report was published in June 2017 and found weak price competition in the asset management sector. In this report the FCA proposed recommendations which aimed to:

  • protect investors - who are less able to find better value for money;
  • drive competitive pressure on asset managers and;
  • improve intermediaries’ effectiveness.

One of the FCA’s recommendations was the referral of the investment consultancy market to the Competition and Markets Authority (CMA) - The CMA investigation into investment consultants

PLSA has worked with the full breadth of its membership to engage with the FCA on this issue. We will continue to do so on the programme of work which has come out of the market study, including on cost transparency, institutional investment advice and use of performance and benchmarks.

THE CMA INVESTIGATION INTO INVESTMENT CONSULTANTS

PLSA's Caroline Escott provides an update on developments from the CMA investigation, looks ahead to what we can expect over the next couple of months and explains how PLSA members can get involved.

Overview of the work so far

In September 2017, The CMA launched its investigation into the market for investment consultancy and fiduciary management services. The investigation will determine whether there are any adverse effects on competition (AEC) in this sector. If any are found, the CMA will decide whether – and if so, what – remedial action should be taken to address these.

The CMA published its Provisional Decision report (PDR) in July 2018. PLSA produced a briefing to help PLSA members understand the issues and remedies.

Next steps

The CMA will conclude the investigation by March 2019.