On 6 July 2021, the FCA set out the findings from its recent review concerning the processes used by different Authorised Fund Managers (AFMs) when they carry out assessments of value for the funds they operate. The FCA found that most of the 18 fund managers it had reviewed between July 2020 and May 2021, covering different business models and sizes, had not implemented assessments of value arrangements that met FCA standards.

The FCA has also issued a statement in which it reminds AFMs that they must carry out assessments of value at least annually. The FCA also expects all AFMs to consider the findings from the review and use them to assess their assessment of value processes. Where necessary, AFMs should make changes to address shortcomings. The FCA intends to review firms again within the next 12 to 18 months and it will assess how well firms have reacted to the regulator’s feedback. The FCA will consider other regulatory tools should it find firms are not meeting the standards necessary to comply with the rules.