Where some feel the regulator perhaps could have gone further, others see a package of reforms to improve investor protection, and commend the FCA for sticking to its guns, despite a wave of pushback from industry bodies.
Andy Agathangelou, founding chairman of the Transparency Task Force, said the FCA has done a “fantastic job” in withstanding massive industry pressure to water down the proposals.
“They are standing firm which means we have a regulator that is determined to look after consumers’ interests despite the enormous lobbying capabilities of the City,” he said.
Agathangelou alluded to the Investment Association’s 146 pages of what he termed “persuasion to undermine [the FCA’s] research” which, he added, had not had the effect the industry body had hoped it would.
There were few drastic changes from the interim report. As was widely expected, the FCA has given its ‘support’ to an all-in fee, which includes an estimate of the transaction charges incurred managing a fund.
But there were a couple of surprises, not least the launch of a study into investment platforms looking at how competition is working in that market.
However, the FCA bared its teeth most over the investment consultancy market after rejecting a proposed undertaking in lieu reference from the UK’s three largest investment consultants, who between them have at least 56% of the revenues in the advisory market.
And it is still threatening to refer the sector to the Competition and Markets Authority – a decision it will make in September.
