The High Pay Centre said in a blog post the FCA should demand detailed disclosures about fund manager pay and incentives as part of the new value for money requirements.
The UK regulator announced this month fund managers would have to conduct an annual “value” assessment as part of new rules and guidance announced as a result of its asset management market study.
High Pay Centre director Luke Hildyard said fund managers are able to land large pay packets because they charge excessive fees, knowing retail clients lack the expertise, resources or advice to properly understand whether or not they’re getting value for money.
Hildyard said asset managers enjoy huge and sustained profits, but performance is frequently mediocre.
“Research suggests that senior staff at fund managers are paid an average of over £200,000. This is perhaps the biggest cost ultimately accruing to the industry’s clients,” he said.
The value for money assessment will requirement a published breakdown of all charges taken from a fund.
