Britain reviews value for money in $10 trillion asset management

Published November 19, 2015
Governments across Europe want their ageing populations to feel confident about saving more for their retirement.—Reuters
Governments across Europe want their ageing populations to feel confident about saving more for their retirement.—Reuters

LONDON: Britain’s markets watchdog is to review the country’s 6.6 trillion pound ($10tr) asset management sector, saying that more transparency may not be enough to guarantee investors value for money.

Governments across Europe want their ageing populations to feel confident about saving more for their retirement, easing the burden on cash-strapped national coffers.

Britain, Europe’s biggest asset management market, has also given pensioners freedom to access their pension pots, sparking concern that investors risk being ripped off.

The Financial Conduct Authority (FCA) said on Wednesday that the time was right for the first study of competition in asset management products and services.

A preliminary review earlier this year raised issues about the 13 billion pounds the sector collects annually in fees, swallowing chunks of returns in some cases.

“Our market study aims to ensure that both retail and institutional investors can get value for money when purchasing these services, which we expect to further strengthen the UK’s position as a major centre for asset management,” said Christopher Woolard, FCA director of strategy and competition.

Profitability of the asset management sector appears to be quite high, with average operating profits of around 35 per cent of revenues, the FCA said.

Published in Dawn, November 19th, 2015

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.