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The FCA Asset Management Study Final Report

28 June 2017

Today’s proposals represent a missed opportunity to deliver real competition across the asset management sector.

The Association of Investment Companies (AIC) today responded to the FCA Asset Management Market Study Final Report.

Ian Sayers, Chief Executive of the Association of Investment Companies said: “Today’s proposals represent a missed opportunity to deliver real competition across the asset management sector. The FCA’s report sees competition almost exclusively in terms of how open-ended funds compete with one another.  It overlooks the potential for other funds, such as investment companies, to enhance competition.

“Though work on greater disclosure is also important, the FCA acknowledges that retail investors often do not make use of the information already available.  By contrast, financial advisers, who have the time and the skills to do so, often ignore investment companies due to concerns or misunderstandings over their regulatory duties rather than what will deliver the best long-term outcomes for their clients.

“The FCA recognises that purchases of investment companies have increased significantly since RDR, but they are still well below where they should be when considering their long-term performance and income advantages.  As investment companies offer many of the features that the FCA sees as beneficial to enhancing competition, such as regular outperformance of benchmarks and independent oversight, this is a clear market failure.

“Advisers manage hundreds of billions of pounds of retail investments.  Removing the barriers that restrict adviser purchases of investment companies could transform competition in asset management and, more importantly, deliver better outcomes for consumers.  The FCA should prioritise further consideration of these issues if its desire to see greater competition in asset management is to be realised.”


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  1. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment.  Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs.  The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 349 members and the industry has total assets of approximately £168 billion.
  2. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance.  The value of investment company shares, and the income from them, can fall as well as rise.  You may not get back the full amount invested and, in some cases, nothing at all.


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