FCA has released several documents resulting from its asset management market study. The key documents are:
- final rules focussing on the duties of fund managers as agents of the fund investors. The changes will require fund managers to make an annual assessment of value and to appoint at least 2 independent directors comprising at least 25% of the board, introduce a new prescribed responsibility under the newly extended SMCR and make changes that will improve fairness around manager profits from investors buying and selling shares and investors moving between share classes; and
- a consultation paper on improving information for investors.
The rules changes will change COLL and will update guidance that was formerly FG14/4 into FG 18/3, on changing customers to post-RDR unit classes. The new guidance addresses questions that arose relating to whether conversions could happen in bulk and without the consent of the client or with advice, and the requirements on issuing new disclosure documents.
The new rules take effect within the next 12-18 months. Comments on the consultation are due by 5 July.