Industry faces £28m-a-year bill to cover FCA's proposed 'remedies'

One-off costs of £6.7m

The UK's investment industry could face costs of £27.7m per year as a result of FCA proposals on fund governance and the 'value for money' rule.

'Remedies' proposed in the final report of the regulator's Asset Management Market Study would also see asset managers incur a one-off charge of £6.7m. The FCA's final report seeks industry consultation on proposals that would see at least 25% of an asset manager's board comprised of independent directors, and a minimum of two on each board, as well as the implementation of a 'value for money' rule. Asset managers' shares hit by FCA report As required by law, the regulator has set out a cost-benefit analysis of the changes it proposes, prior to implementation. The bulk of costs ...