Corporate Advisory

FCA, Asset Management paper – Focus on Fees

The FCA has confirmed it will seek to introduce an all-in fee to improve transparency and pricing competition.

The all-in fee is part of a triple-pronged approach from the regulator in its final asset management market report, which include measures to improve fund governance and the effectiveness of intermediaries and investment consultants.

The move to a single, easily comparable fee was first put forward in its interim report published in November. The FCA said it continues to ‘support the disclosure of a single, all-in fee to investors’ and will consult on how it is implemented later this year.

In November, the regulator put forward four different proposals on how this could work, and said the industry feels the best route will be the agreement of a ‘standardised template of costs and charges’, which will include the asset management fee and an estimate of transaction charges.

This will include the asset management charge, an estimate of transaction costs and intermediary fees.

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