FCA wants to strengthen duty on managers and consultants

The Financial Conduct Authority report (FCA) has revealed that around £109bn of investor assets is held by fund managers who charge high fees, but do not offer significant variation from an index-tracking strategy. The report also claimed that investment consultants struggle to select managers, with the likelihood of conflicts of interests within the firm, concluding that investors find it difficult to assess the value of advice given. Marc Haynes, senior vice president at asset management company Cohen & Steers highlights in Pensions Expert that active management fees will need to change in order to address the criticism raised by the FCA report.