UK fund administration shake-up: the reaction

● Andy Agathangelou, chairman of consumer group the Transparency Taskforce, said the regulator had “done a tremendous job” in attempts to protect consumers. “This appears like a great example of a regulator performing what is needed despite exactly what must-have been hills of pressure and resistance from a market that will have lobbied very hard to maintain the standing quo whenever you can,” he stated. “The FCA’s ‘medicine’ is exactly just what the industry needs.”

● Gina Miller, co-founder of SCM Direct, the financial investment boutique, said: “while the FCA is eventually pursuing a pro-consumer schedule it's unsatisfactory which they nevertheless look like dragging their particular legs on some crucial aspects. More consultations opens the FCA to much more self-interested lobbying from industry and its particular anti-consumer trade bodies.”

● Martin Gilbert, chief executive of Aberdeen investment Management, said he welcomed the report and even called from the FCA to go more in its governance recommendations. “We have claimed several times that I am in favour of all-in charges including all costs whilst the industry has an obligation to supply what the client wants,” he said.

“Im a vocal supporter of the benefits of concerning independent directors in investment governance, having seen the way they assist somewhere else in the world. While promoting FCA’s basic moves inside path, Aberdeen would advocate going beyond the FCA currently implies by introducing two independent directors about the boards of UK open-ended investment ranges.”

● Daniel Godfrey, leader of this People’s Trust and previous head associated with UK’s Investment Association, the trade human body, said he had been let down by a number of aspects of the regulator’s report, specifically pertaining to fund managers’ goals and their particular duty to investors. “I think it really is quite smooth,” he said. “The FCA will remind [fund managers] of their responsibilities in senior managers’ regime, versus putting an obligation on them to act in peoples’ best interests. I think investment managers are rather satisfied with that.

● Ryan Hughes, head of investment choice at retail broker AJ Bell, said question markings nonetheless hung over what would really change, as soon as. “An awful significant just what is established these days by the FCA remains up for additional assessment, so there is likely to be small instant change,” he said. “It also needs to be remembered that the unbundling of investment fees considering that the Retail Distribution Evaluation has received without any downward impact on energetic fund costs as it had been expected to do.”

● Willis Towers Watson said it supported the recommendation your government enable the watchdog to modify the financial investment consulting business: “It is in our passions to focus constructively to constantly enhance industry training to ideal achieve the interests of your clients, as well as the end-saver.”

● Richard Dowell, head of customers in danger and financial investment consultancy at Cardano, in addition welcomed the move but stated the FCA has actually missed an opportunity to offer the passions of retirement scheme trustees and their particular users. “The last report describes many important problems that the industry must get right for the benefit of trustees and their particular users; especially in relation to competition, value for money and gratification dimension,” he said. “However, you can find only some fast tips about exactly how these places are enhanced.”

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