2017年-FCA英国金融行为监管局_ms15_2_3_114页_3mb

Asset Management Market Study Final Report Summary

Core Content

This report outlines the final findings and proposed remedies of the FCA's Asset Management Market Study, launched in November 2015. The study aims to ensure the market functions efficiently and provides value for money for investors, particularly those who are less able to engage actively with their asset managers. The findings and remedies are based on extensive consultations with over 200 stakeholders and are consistent with the interim report.

Key Findings

Price Competition

• Weak price competition exists in the asset management industry, especially in retail active management services.
• Price clustering is evident in retail funds, with active charges remaining stable over the past decade.
• High profitability (average 36%) is observed, suggesting that price competition may not be effective.
• Segregated mandates for institutional investors tend to have lower prices as their size increases, but retail funds do not benefit from similar pricing reductions.

Performance

• No clear link between fund charges and gross performance in retail active funds.
• Negative relationship between net returns and charges, implying that higher charges may lead to worse performance.
• Past performance is not a reliable indicator of future performance, and investors struggle to identify outperforming funds.
• Mergers and closures of poorly performing funds can improve outcomes, but not all such funds are merged or closed, and the process may take time.

Clarity of Objectives and Charges

• Confusion exists regarding fund objectives and charges, especially for retail investors.
• Active funds that closely mirror passive funds often charge significantly more.
• Retail investors are often unaware of the charges they pay, while institutional investors are increasingly focused on them.
• Value for money is considered as a risk-adjusted net return, incorporating performance, risk, and cost.

Proposed Remedies

1. Strengthening the Duty to Act in the Best Interests of Investors

• Clarify expectations around value for money.
• Increase accountability via the SM&CR.
• Introduce independence in governance structures.

2. Improving Transparency and Disclosure

• Single all-in fee disclosure for retail investors, as required by MiFID II.
• Standardised disclosure templates for institutional investors, to be developed by an independent person.
• Public disclosure of risk-free box profits and box management practices by AFMs.
• Proper communication of charges to ensure investors understand their impact on returns.

3. Enhancing Fund Switching and Share Class Options

• Facilitate switching to cheaper share classes.
• Propose a sunset clause for trail commissions.
• Mandatory conversion of unresponsive unitholders under specific conditions.

4. Addressing Investment Consulting and Intermediaries

• Reject undertakings in lieu of a market investigation reference to the CMA.
• Consult on bringing investment consultants under the regulatory perimeter.
• Launch a market study into investment platforms to assess competition in that sector.

5. Pension Scheme Consolidation and Pooling

• Recommend DWP to continue reviewing and removing barriers to pension scheme consolidation and pooling.
• Support economies of scale for pension funds through consolidation.

6. Objectives and Benchmarks

• Improve clarity in fund objectives and benchmarks.
• Ensure consistency in benchmark usage across marketing materials.
• Require explanation of why benchmarks are or are not used.

Next Steps

• Consultation on remedies will be conducted in phases, with some proposals being finalized and others requiring further stakeholder input.
• A working group will be chaired to improve the clarity of fund objectives.
• A decision on market investigation reference to the CMA regarding investment consultancy services is expected in September 2017.
• Further consultations on performance reporting, benchmark use, and fee disclosure are planned for later in 2017.

Measures of Success

• Operational efficiency and market impact will be measured.
• Investor outcomes, including price paid and net performance, will be evaluated.
• Investor behaviour, fund flows, and governance effectiveness will be monitored.

Regulatory Context

• The proposed remedies align with MiFID II, PRIIPs, and the SM&CR.
• The FCA intends to consult on related proposals if further clarification is needed at the European level.

Conclusion

The FCA's final report highlights the need for greater transparency, clarity, and competition in the UK asset management industry. By addressing weaknesses in price competition, performance communication, and intermediary practices, the proposed remedies aim to improve investor outcomes and ensure the industry remains competitive and attractive to investors.