FCA warns of potential intervention after damning review of fund value assessments

AoV study reveals widespread failures from fund managers

Mike Sheen
clock • 4 min read

A Financial Conduct Authority (FCA) review of fund managers’ Assessment of Value (AoV) reports has revealed widespread failures in the quality and content of the documents, with the regulator warning it will intervene if firms do not improve.

In the report published today (6 July), the FCA said it expects "more rigour" from fund managers' value assessments, having seen evidence of poor or unsatisfactory assessments of performance and costs, and independent directors lacking "sufficient understanding of relevant fund rules." Fund managers' AoVs will save investors over £30m - reports The FCA urged fund managers to make changes to "address shortcomings" where necessary, with the regulator planning another review "within the next 12 to 18 months" assessing "how well firms have reacted to our feedback". "We will consider ot...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Regulation

FCA renews approach to enforcement disclosures after failures on Julius Baer case

FCA renews approach to enforcement disclosures after failures on Julius Baer case

Following Upper Tribunal criticism

Valeria Martinez
clock 12 November 2024 • 2 min read
Schroder BSC Social Impact plans investment policy revamp to adopt SDR label

Schroder BSC Social Impact plans investment policy revamp to adopt SDR label

'Sustainability Impact' label

Linus Uhlig
clock 12 November 2024 • 2 min read
FCA unveils enhanced rules for market data and investment research

FCA unveils enhanced rules for market data and investment research

Including bonds and derivatives

Cristian Angeloni
clock 05 November 2024 • 2 min read
Trustpilot