FCA asset management report makes ‘uncomfortable reading’ for investment consultants


Ian Cormican, partner at Sackers, says:

“The FCA has stuck to its guns. The report makes uncomfortable reading for investment consultants who now face a potential reference to the Competition and Markets Authority (CMA) and a consultation on whether the provision of asset allocation advice should be brought within the FCA’s regulatory perimeter.

“A number of consultants offered undertakings in lieu of the reference to the CMA. While the FCA’s provisional view is that it should reject the undertakings, the cat is out of the bag in terms of what consultants can offer by way of disclosure and conflict management. Trustees are likely to expect their consultants, if they are not already doing so, to comply with the undertakings pending a final decision from the FCA in September 2017.”

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