The PLSA has responded to the FCA’s Asset Management Market Study.
Our response looks at proposals in relation to the demand and supply side of the asset management market, as well as the role of investment consultants, and is broadly supportive of the proposals contained in the interim report.
We have been a long-standing advocate of the consolidation of pension schemes, so are encouraged by the recommendation that schemes should pool their assets. However, we also note that more significant gains are attainable by closer consolidation and would like to see a focus on stronger, consolidated governance arrangements in particular.
We support measures to require clearer disclosures of transaction costs by asset managers, and highlight the importance of a clear, standardised template that is adopted across the market.
We also share many of the concerns around conflicts of interest facing investment consultants and welcome proposals to bring the consultants within the regulatory perimeter and refer their industry to the Competition and Markets Authority.