Friday saw the FCA release minutes from the most recent Board meeting, showing that amongst the plans to tackle weak competition the FCA has agreed to remove the term ‘value for money’ from the final rules relating to the Asset Management Market Study (AMMS). It’s fascinating to watch the FCA wrestling with such a difficult concept for our industry.
Fund managers will be required to assess annually whether charges taken from a fund are justified in the context of overall value – an assessment of value – but in a world where companies themselves are increasingly focused on maximising ‘shareholder welfare’ rather than just ‘shareholder returns’, maybe it’s time asset managers and the FCA aligned with this trend and started to look at a broader definition of what value actually means to investors.
Perhaps we could even start by asking them?!
Link to original article here: