FCA group chair forced to apologise to fund houses

Chris Sier, who chairs the FCA’s Institutional Disclosures Working Group has written to Investment Association boss Chris Cummings and Andrew Bailey, chief executive of the Financial Conduct Authority, to apologise for comments in made in an interview with the Times newspaper.

In the interview, Mr Sier said institutional pension fund managers are taking £35bn more in fees than they are entitled to. He said the Investment Association, and one member of that Association, fund house Schroders, are particularly resistant to change.

Mr Sier was appointed by the FCA in August to create a standardised methodology to help pension fund clients to understand the actual fees they pay to managers.

In the article, Mr Sier said he thinks the total cost is 3 per cent, but it should be closer to 2 per cent.

But he has now written a letter to Mr Cummings and Mr Bailey, emphasising that the views expressed are his, and not representative of the FCA’s view.

He said in the letter: “I would like to make clear that I did not discuss individual institutions or pass comment on them. I apologise to the IA that the article gave the impression that they were not wholly engaged, and want to take this opportunity to set the record straight.

"I am not biased against the investment management industry in my stance, and the many industry members of the IDWG have been exemplary in their positive contribution.

"We have made considerable progress in the short time the IDWG has been operating, and we expect to publish an update shortly.

"For the avoidance of doubt, I would like to assure you that if I have caused any offence to the IA or its members I would like to apologise. I do this with an easy conscience because I know that the IA’s participation in the process to date has been substantial and crucial, and will be going forward.”

David.Thorpe@ft.com