Life through a lens – FCA  Market Study

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Life through a lens – FCA Market Study

The FCA, through its latest Asset Management Market Study, continues to ensure the lens is focused firmly on an industry that may already be exclaiming ‘ enough is enough!’ 

This time round, the FCA has brought new context to the study, strengthened by last year’s award of competition law powers. The FCA’s wider remit, if applied successfully, will undoubtedly benefit the market should it remove barriers and stimulate innovation.

Yes - there will be focus on ‘closet tracker’ legitimacy and challenge over product transparency and value. In fact, the study covers the breadth of the value chain. However, we believe the real interest, and perhaps punch, will surround the issue of competition, and whether the FCA will feel a need to enforce against Competition Act breaches, or indeed prompt in-depth CMA investigations.  Experience from banking and energy industries suggests the impacts of focused reviews can be profound, both in terms of information gathering and penalty.

As certain firms begin to address formal requests for information themselves, the strong recommendation for the remainder is a clear one - preemptive preparation is the best course of action. Knadel is engaging with parties across the industry and would be happy to discuss the study should you require further insights or assistance.

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By Ed Patrick

Ed is a Management Consultant at Knadel, specialising particularly on operating model design projects within the Institutional investment management industry.

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