Role of Fund Manager Boards and Senior Managers in Assessing Value for Money for Investors

The Financial Conduct Authority (FCA) recently conducted a review of fund managers’ value assessments and found that while many firms have positive practices in place, some require improvement. This follows the 2017 Asset Management Market Study, which revealed evidence of weak demand-side pressure on fund prices, resulting in uncompetitive outcomes for investors in authorised funds. Since then, the FCA has been working with industry to ensure value for money is being offered to investors.The review found that authorised fund manager boards and senior managers are responsible for making sure that value assessments are properly carried out and any issues identified are addressed quickly. The introduction of the Consumer Duty further supports these expectations. As a result, the FCA expects firms to consider their findings and make improvements where necessary.