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BREAKING NEWS

BREAKING NEWS

UK watchdog tells asset managers to use fee disclosure template

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LONDON (Reuters) - Britain's markets watchdog told asset managers on Wednesday that unless they disclose fees to institutional investors using a voluntary template, it would consider tougher action.

The Financial Conduct Authority wants to give big investors clear information about total charges levied by asset managers so they can compare services being offered.

Following an FCA review of the sector in 2017, asset managers agreed under the watchdog's supervision to come up with a new template for disclosing fees and charges to institutional investors, known as the cost transparency initiative or CTI.

"We will be watching to see asset manager and service provider uptake which should ultimately lead to better investor outcomes," said Christopher Woolard, FCA executive director for strategy.

"We will reconsider the issue of disclosure to institutional investors in the future if we have any reason to be concerned about the effectiveness of the CTI," Woolard said.

If asset managers failed to use the new template, the FCA could make using it mandatory.

(Reporting by Huw Jones)

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