Financial Services Regulation

Increase text sizeDecrease text sizeDefault text size

Unravelled: UK's Financial Conduct Authority report into asset management: guidance for future direction

6 July 2017

Written by Partner Marc Kemp (view CV) and Senior Regulatory Counsel Michael Mathieson (view CV)

ASIC often looks to overseas regulators for inspiration. So when a particularly influential regulator publishes a comprehensive report about a large segment of its regulated population, including possible new areas for regulation, it can pay to take note because it may be a guide to the future direction of Australian regulation.

In November 2015, the UK's Financial Conduct Authority began a market study into asset management. In November 2016, the FCA published its interim report. After consulting on its interim findings and proposed remedies, the FCA published its final report on 28 June, in which it confirmed its interim findings about imperfect governance, lack of adequate price competition (particularly in the retail funds sector), cost opacity and inadequate communication of fund objectives and performance, and proposed a package of remedies.

Our alliance partner Linklaters has prepared a summary of the findings and announced remedies: see Summary and analysis of the FCA's Asset Management Market Study Final Report. Many of the remedies the FCA is considering would be familiar to ASIC and some segments of the Australian financial services industry but, as in the UK, would amount to far-reaching extensions of existing regulation. We have prepared a comparative summary for the Australian market.

Other articles in this edition of Unravelled

Unravelled banner

ASIC's report on member experience of superannuation – ASIC continues to set a high bar
ASIC Report 529: Member experience of superannuation, released just a day before the Productivity Commission officially sets its sights on assessing the state of the superannuation system, serves as a timely reminder of the ever-increasing expectations of the conduct and disclosure practices of superannuation trustees. Read more>>

Raising capital, raising standards: managing conflicts of interest in sell-side research and corporate advisory
ASIC continues its mission to enhance the regulation of Australia's equity markets, with its recent publication of Consultation Paper 290 on managing conflicts of interest when dealing with sell-side research and corporate advisory. The proposed amendments will primarily target investment banks and corporate advisers in the IPO and capital raising process. Read more>>

For further information, please contact:

Share or Save for later

What are these?


To save this publication on your smartphone or
tablet for off-line reading (eg on a plane flight),
we recommend Pocket.



You can leave a comment on this publication below. Please note, we are not able to provide specific legal advice in this forum. If you would like advice relating to this topic, contact one of the authors directly. Please do not include links to websites or your comment may not be published.

Comment Box is loading comments...