LONDON May 13 Asset managers have been failing
to fully explain their charges to investors and supervisory
checks will be made, Britain's financial watchdog said in its
latest crackdown on the sector.
The Financial Conduct Authority (FCA) said a review has
found that some firms did not provide investors with a clear,
combined figure for charges in their marketing material or on
"We believe that it is important for investors to clearly
understand and compare charges across the market as this,
together with fund performance and risk profile, are the key
areas that they should look at," Clive Adamson, FCA director of
supervision, said in a statement.
"We are therefore today encouraging all firms to respond to
our findings and adopt the clarity and consistency we believe to
The FCA said it will follow up this work with firms through
its routine supervision and work with the Investment Management
Association (IMA), a funds industry body, which has issued
voluntary guidance on the disclosure of charges and costs.
Last week the FCA tightened rules on how funds can use
customer money to pay brokers for research on stock picks.
(Reporting by Huw Jones, editing by Jemima Kelly)