26 Jun FCA drive for transparency and better outcomes will mean greater scrutiny on the billions of dollars of value that is missed every year in areas such as corporate actions.
On Wednesday, the FCA published the final findings of its asset management market study. The proposals aim to strengthen the duty on fund managers to act in the best interests of investors, clarifying expectations around value for money, increasing accountability and introducing a minimum level of independence in governance structures.
SCORPEO sees important parallels with the forthcoming MiFID II reporting requirements on corporate actions (see link below). Subject to certain qualifications and exceptions, for the first time there will be an obligation to report corporate action elections to the regulator. Analysis demonstrates that investors are missing out on billions of dollars every year from sub-optimal economic decisions and these will now likely be laid bare for investors to scrutinise. In light of the FCA report, it is now vitally important to ensure this missed value is captured in the clients’ best interests. Investment managers who have previously been indifferent can no longer ignore these issues.