The FCA has published Market Study 15/2.1: Asset management market study – Terms of Reference (MS15/2.1).
Following the publication of the FCA’s 2015/16 business plan, in which it announced its intention to undertake a market study into asset management, the FCA has published MS15/2.1 to understand whether competition is working effectively to enable investors to get value for money when purchasing asset management services, and in particular:
- how asset managers compete to deliver value;
- whether asset managers are willing and able to control costs and quality along the value chain; and
- how investment consultants affect competition for institutional asset management.
The FCA notes that it will shortly approach market participants for information and data to look into the above issues. In addition, the FCA will host roundtables and meetings throughout the study.
The FCA aims to publish interim findings in summer 2016 and a final report by the early 2017. The interim findings will indicate where the FCA has found any areas of concern and explain what they are and how it proposes to address these concerns.
The market study into asset management will be the second competition study looking into wholesale markets, following the publication of terms of reference on investment and corporate banking in May 2015.
The FCA was established with an operational objective to promote competition in the interests of consumers. Market studies are a tool to analyse the effectiveness of competition in the markets the FCA regulate.
If the FCA concludes that competition is not working well, the FCA may intervene to promote effective competition. It can do this through rule-making, introducing firm-specific remedies or enforcement action, publishing general guidance or proposing enhanced industry self-regulation.
View FCA publishes terms of reference for asset management market study, 18 November 2015
