PLSA welcomes new FCA regulations on authorised fund manager governance

The Pensions and Lifetime Savings Association (PLSA) today commented on the Financial Conduct Authority’s Asset Management Market Study remedies and changes to the handbook – Feedback and final rules to CP17/18.

Caroline Escott, Policy Lead: Investment and DB, Pensions and Lifetime Savings Association, commented: 

“We welcome the FCA’s proposals to strengthen the governance requirements on authorised fund managers (AFMs). Strengthening the duty of AFMs to act in their clients’ best interests is vital to aligning interests across the investment chain in a way that benefits savers. 

“More specifically, the ability of investors to scrutinise their investment managers and hold them to account on the value of the service they provide is necessary for a well-functioning market.  We had supported the FCA’s proposals to ensure AFMs are fully accountable on value for money and are pleased that the FCA has decided to redraft its rules in a way which will focus on the full value proposition; cost transparency is vital but it is important to avoid a ‘race to the bottom’ on costs and we must instead encourage trustees to focus on the broader value for money they receive. 

“Independent directors and chairs can play a vital role in challenging an organisation’s culture and processes and the FCA’s decision to introduce independent members to AFM board will be of great benefit to investors; we believe that an independent presence of 25% of board membership is a good starting point and hope that this level will increase over time.”

-ENDS-

NOTES TO EDITORS

The PLSA’s full response to the FCA’s consultation on the governance of Authorised Fund Managers can be found here. 

ABOUT THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION

We’re the Pensions and Lifetime Savings Association; the national association with a ninety year history of helping pension professionals run better pension schemes. Our members include over 1,300 pension schemes with 20 million members and £1 trillion in assets, and over 400 businesses. They make us the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels.

Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of savers.

PRESS CONTACTS

Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1748, M: 07901 007 713, E: [email protected]

Eleanor Carric, PR Manager, Pensions and Lifetime Savings Association
T: 020 7601 1718, M: 07825 171 446, E: [email protected]