FCA to probe asset management market

Over the next year the FCA will assess “how asset managers compete to deliver value”; “whether asset managers are motivated and able to control costs along the value chain; and “what effect investment consultants have on competition for institutional asset management”.

The watchdog will also look at whether there are any barriers to innovation and/or technological advances in asset management.

The FCA will consider both retail and institutional investors in this study.

Christopher Woolard, director of strategy and competition at the FCA, said: “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.

“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.”

FCA said it will shortly approach market participants for information and data to look into the issues set out above, as well as host roundtables and meetings throughout the study.

The FCA aims to publish interim findings in summer 2016 and a final report by the early 2017.