In its response, the CFA Society of the UK also welcomed the FCA’s recommendations, but chief executive Will Goodhart it was a “shame” that the focus is around the ‘all-in’ fee.
“Governance is the real story and here the FCA has got it absolutely right,” he said.
“There’s been too little independent oversight of the way in which investment vehicles are managed. Strengthening the governance requirements – dealing with the root cause rather than with the symptoms – will improve client outcomes.”
He concluded: “Even before its publication, the report had achieved a lot simply by focussing attention on cost and competition.
“It’s hard to argue with the need for that given the margins in the sector. We think that the FCA has done the right thing by tackling issues at their root and by putting the onus on firms to address these issues through improved governance and disclosures.
“The profession needs to rise to that challenge and to change clients’ experience of working with us.”
