The Financial Conduct Authority has published a second consultation paper on remedies arising out of the Asset Management Market Study. This consultation concerns improving disclosure by authorized fund managers to their investors and should be read with the Policy Statement, final rules and revised guidance on enhanced governance arrangements for U.K. AFMs, which were published alongside the consultation paper. The FCA is proposing:

• new guidance on how AFMs should make fund objectives and investment policies clear and more useful for investors;
• new rules requiring managers to be clear about why (or why not) a benchmark has been used and how investors should assess the performance of the fund;
• new rules requiring AFMs that use benchmarks to use and reference them consistently across marketing materials;
• new rules requiring that where managers present past performance they must do so in an appropriate and consistent manner; and
• amending the performance fee rules to require that performance fees be calculated on performance net of other fees.

The proposed rules would apply to AFMs in respect of their management of authorized funds. Responses to the consultation should be submitted by July 5, 2018.

View the second consultation on remedies arising from the AMMS.

View details of the Policy Statement and final rules.

View the AMMS final report and the first consultation paper.