FCA kicks off fund management fee review

The FCA has written to 11 fund management companies, kicking off a thematic review of fund charges which it first announced in March.

The regulator is interested in identifying complex charging structures which make it difficult for investors to compare funds by price.

A spokesperson for the FCA said: “We think some charging structures have become more complex in the past couple of years. It can be much harder for consumers to compare products on price.”

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The FCA will be collecting data on the thematic review over the course of the next two months with the process being completed by the end of 2013. The spokesperson said the regulator would aim to publish its results early in 2014.

The previous regulator, the FSA, said in March that its successor would look into charging structures that could “exploit consumers’ behavioural bias”.

Investment Adviser reported in October last year that fund fees was likely to be a key focus for the regulator following the implementation of the RDR.