UK’s Financial Conduct Authority (FCA) is set to launch a market study on asset management to examine charges paid by investors and the factors driving the charges.
The watchdog has highlighted this move in its business plan for the year 2015/16. On the wealth management industry, the regulator only said that it is currently "assessing suitability standards" within the sector.
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The plan laid focus on other areas as well such as the sales practices of pension firms since the 2014 review into annuities.
FCA will also look at how firms were helping consumers make the right selection of pensions as the options with the Government’s pension reforms become soon available.
The regulator further said that it will carry out a "post-authorisation" review of funds, to examine whether new UK authorised funds and segregated mandates are operated in compliance with FCA rules.
The review will include expectations set by marketing material, disclosure material as well as investment mandates.
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By GlobalDataReferring to the business plan FCA chief executive Martin Wheatley commented, "This is an important day in terms of setting out our priorities for the year ahead and also giving firms greater clarity on how they can expect to work with us.
"The Business Plan is set against the backdrop of the most fundamental changes to pension policy we have seen in over a generation. Therefore we will be looking at how the market is working and in particular, how the industry is adapting to this considerable change and what it means for consumers. This is exactly the sort of work that is expected of the FCA, and I believe is a fundamental benefit to consumers and industry."
In its risk outlook, published with the business plan, the regulator said that it was especially looking at the systems and controls of firms in relation to financial crime.
