Under new guidelines, the UK’s asset managers will have to annually report an assessment of the value of their services they provide to clients, such that clients can have a firmer grip on the fund’s objectives and better undertsand its performance.
On Thursday, Britain’s market watchdog told the country’s asset managers, they will have to assess the worth of their services they provide to investors every year.
To do so, Britain’s Financial Conduct Authority gave Britain’s asset managers 18 months to prepare for the annual assessment of value, “as part of their duty to act in the best interests of the investors in their funds”.
Further, fund managers will have to appoint at least two independent directors to their boards, said the FCA in a statement.
The FCA has also launched consultations on remedies related to funds such that they are able to improve the quality in their basket of offering. This covers how to better present fund objectives with more clarity to investors as well as benchmarks the fund uses for tracking performance.
These proposals build on the FCA’s sweeping review of the asset management sector, worth 7 trillion pound, as of June 2017.