The Investment Association, which represents UK asset managers that manage £5tn on behalf of investors, is reportedly planning to raise standards for poorly run asset management groups over the next few months.
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The new plans, which include seven or eight key standards, have been proposed to provide investors better value for money, reported Financial Times.
Under the new standards, Investment Association could put pressure on asset managers to improve their standards as well as encourage investors to switch to companies that meet the required standards.
The proposed standards will also include charging the same fees and offering the same stocks to all clients as well as principles that will govern transparency and warn firms that they should value for money and put the customer first.
Additionally, the Investment Association plans to form an independent panel or commission an independent report to make sure that member firms adhere to the new standards.
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By GlobalDataIt will also consult the UK regulator, the Financial Conduct Authority, on the principles.
The association aims to build on other UK initiatives such as the creation of an Investor Forum to strengthen the power of shareholders over issues such as executive pay, and the Retail Distribution Review, which has cracked down on hidden commissions and charges.
Investment Association CEO Daniel Godfrey said: "We need to look at the big picture, which is about making investment better and making sure investment managers are able to demonstrate how they give customers a fair deal and put their interests first."
