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Funds industry shouldn't be surprised at FCA charging probe
by Dylan Lobo on Oct 30, 2013 at 14:51
'The industry hasn’t always made the best decisions in the past with regards to fees, commissions and research costs, and clarity is needed.'
Overall Caroll is supportive of the FCA's move as long as lessons are learnt.
'It is [also] important for the FCA and the government to support the asset management business by ensuring that these investigations, tighter rules and possible fines lead to a more robust industry.
'For every additional cost incurred in tightening the regulation, equal weight should be given to consider what barriers can be removed to reduce asset managers’ costs and support a larger and more globally competitive UK asset management industry.'
Meanwhile new online discretionary manager Nutmeg, which got the industry talking earlier this week when it disclosed its full-year performance numbers after fees, described the FCA's 'music to its ears'.
Nutmeg chief investment officer Shaun Port said: 'Today’s announcement from the FCA is music to our ears. For far too long now, the investment industry at large has been shrouded in hidden fees and bewildering jargon.
'It’s simply too confusing for people to understand how much they’re paying for their investment management services. Investors are being kept in the dark and that’s simply not fair. We’ve seen the same issues for investors in the discretionary wealth management sector.'
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