The FCA has been conducting a review of the UK’s fund management industry since last year and was due to report its early findings in the summer, now delayed until late autumn.
According to the Sunday Times, sources in discussion with the FCA are saying that the review has steered away from restricting fees, with the regulator taking the view that fee caps alone would not prevent investors from paying over the odds.
The FCA announced a market study into asset management in its 2015/16 Business Plan, seeking to understand: how asset managers compete to deliver value; whether asset managers are willing and able to control costs and quality along the value chain, and how investment consultants affect competition for institutional asset management.
It highlighted how UK asset management ¬firms hold more assets under management, £6.6trn, than those in any other European nation, and globally, only the US had higher assets under management than the UK.
The final report on the study is due to be published next year.