Investments  

FCA worried about fund manager service: JP Morgan

The FCA is concerned that asset managers are focusing on service for intermediaries rather than the end consumer, Jasper Berens, head of UK funds business at JP Morgan Asset Management, has said.

The City watchdog was aware that most fund managers now are completely intermediated, Mr Berens said. As a result, fund houses’ service capability had been built around the intermediary and not the end consumer, he added.

Speaking during the Tax Incentivised Savings Association conference panel debate, he said: “I think the regulator, rightly, is pushing really hard to make sure fund managers understand the end consumer much more, particularly product creation and then ongoing suitability.

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“Let us have the same debate around the delivery of service as there has been about cost.”

Also speaking at the event, Gina Miller, founder of SCM Group, revealed the issue of confusion surrounding the cost of funds was soon to be decided by the European Union.

She said Mifid II required all costs to be aggregated, and that the industry would find out in December how that goal would be interpreted into regulation, which will come into force in 15 months’ time.

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An FCA spokesman said: “We’re clearly interested in making sure that fund managers place the interest of investors at the heart of their business, and this includes the likes of product creation.

“This is something that we review as part of our ongoing supervision of the asset management industry.”