FCA asset management market study remedies: policy statement, final rules and further consultation
The FCA has published a policy statement, setting out feedback on CP17/18 and final rules implementing some of the remedies identified in its asset management market study (AMMS). It has also published a consultation paper of further remedies. The main changes to the rules consulted on in CP17/18 relate to: Value for money assessments and reporting; Independent directors; Senior Managers and Certification Regime (SM&CR); Box Profits; Share Classes.
The final rules are set out in the:
The FCA has also published: a consultation paper on further remedies following the AMMS and an occasional paper on drawing attention to charges in the asset management industry. The deadline for the responses to the consultation is 5 July 2018. And a speech by Andrew Bailey, FCA Chief Executive, on asset management from a regulatory perspective. FCA, 27 April 2018
FCA forms on asset management authorisation process
The FCA has published three new forms to assist firms in the pre-application stages:
A new webpage on prudential categories for asset managers has also been published which is intended to help firms identify the key regulatory requirements that determine their prudential category. In addition the FCA has updated its webpage on submitting an application. FCA, 20 April 2018
ECON draft report on proposed Investment Firms Regulation and Directive The European Parliament's Economic and Monetary Affairs Committee (ECON) has published its draft report on the proposal for a Regulation on the prudential supervision of investment firms (IFR).
ECON has also published its draft report on the proposal for a Directive on the prudential supervision of investment firms (IFD).
The explanatory statement states support for a dedicated, tailor-made, regime for investment firms in the EU, including amendments on: Own funds requirements for class 3 firms; Movements between class 2 firms and class 3 firms; Capital and liquidity requirements and K-factors; Reporting, governance and remuneration; and Third country regime and equivalence. ECON, 11 April 2018
CMA publishes three working papers in investment consultants market investigation
As part of its investment consultants market investigation, the Competition and Markets Authority (CMA) published working papers on barriers to entry and exit, financial performance and profitability, and the competitive landscape. Consultation ends 10 May 2018.
CMA, 26 April 2018
CMA working paper on supply of fiduciary management services in investment consultants market investigation
The CMA has published a working paper on the supply of fiduciary management services by investment consultants as part of its market investigation into the supply and acquisition of investment consultancy and fiduciary management services in the UK. This working paper sets out the CMA's initial analysis of competition issues that may arise when firms offer both investment consultancy and fiduciary management services.
The CMA has found some evidence of practices and behaviours on the supply and demand side that could be consistent with some customers being steered towards the fiduciary management services of their incumbent investment consultant, without having applied much competitive pressure on the incumbent firm. The CMA seeks views by 12 April 2018 on its analysis and emerging thinking, and also on some possible remedies that it has identified to encourage trustee engagement and to reduce potential conflicts of interest.
CMA, 5 April 2018