AIC urges asset managers to review fund structures in FCA study response

Also flags enhancement to RDR reforms

The Association of Investment Companies (AIC) has called for a greater regulatory focus on fund structures and redemption policies in its official response to the Financial Conduct Authority's Asset Management Market Study.

The trade body also said asset managers should assess whether existing fund structures are suitable for the underlying assets, and offer the best opportunity to secure long-term performance. The AIC has issued its response to the FCA Asset Management Study released last year, which found both active and passive open-ended funds often underperformed their benchmarks after charges. Research from the AIC, however, demonstrates that investment companies operating in equivalent sectors have beaten their benchmarks more frequently than equivalent actively managed open-ended funds over five ...