Fidelity throws down gauntlet for post-FCA Study world but will rivals follow?

Following Fidelity's move to a variable fee structure on equity funds

Following the release of the Financial Conduct Authority's (FCA) final 'remedies' as part of its Asset Management Market Study, some consumer groups criticised the regulator for not taking a strong-arm approach, arguing the step-change needed is unlikely to be driven by the sector itself.

Although some groups at the time tried to play down the impact of the findings by arguing their models were already fit for purpose, the reality is the FCA paper was a game changer. Now, with the headline-grabbing decision by Fidelity International to 'disrupt' the market by introducing an option for variable investment fees on its active equity products linked to performance (the 'fulcrum fee' structure), this game has changed again. Up to this point, a few providers had started reducing charges on some products, but now fund giant Fidelity has thrown down the gauntlet by proposing a...