As platforms digest new regulatory guidance to take more action to protect their investors, several told Investment Week they were not planning to implement a charge ceiling on the funds they offer and were instead mulling other options.
Some said they feel it is an appropriate mechanism, raising concerns about the prominence of value versus costs and the implication for investment trusts. At the end of July, the Financial Conduct Authority published the final guidance on its new Consumer Duty rules, which entailed, among other things, a requirement for platforms to act as protectors for investors and take action on funds that do not offer value for money. The new rules, which are effective from 31 July 2023, will require platforms to take appropriate action when funds or other financial products present poor value to...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
