I have not yet had time to read the final FCA report on competition in asset management in its entirety, but on first reading its publication appears to represent a landmark moment in the history of UK investing.
For far too long, asset management has worked for the benefit of a whole range of financial intermediaries, but not the people who really matter, namely end investors. This report offers hope that the balance will finally be redressed.
The proposal to make senior individuals in asset management firms responsible for ensuring that they act in the best interests of consumers is especially significant.
I also welcome proposals to standardise disclosure of costs and performance. The introduction of a single all-in fee, though only a proposal at this stage, would be a major advance.
The intense lobbying we have seen against reform since the publication of the interim report shows an industry in denial. That the FCA appears largely to have stood firm is to its credit.
My colleagues at the Transparency Task Force also deserve praise for the way they have fought the consumer’s corner.
This battle is not yet won. But the UK regulator has sent out a very strong signal that change is on its way. Let’s hope that regulators around the world will now follow the FCA’s lead.
ROBIN POWELL is a freelance journalist and the founding editor of The Evidence-Based Investor. Based in Birmingham, England, he founded Ember Television and Regis Media, and he specialties in helping disruptive financial firms to grow. He also campaigns for a fair, transparent and sustainable investing industry. You can follow him on Twitter at @RobinJPowell.
Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.
