#SFTW: Watchdog to investigate UK fund industry, don’t get your hopes up

Posted by Robin Powell on November 20, 2015



There was a big development in the UK this week, with the Financial Conduct Authority announcing a review of the value (or lack of it) provided by the asset management industry. There’s been plenty written on this, but here are my highlights.. Watchdog.


UK fund managers brace for hit to business model (Madison Marriage & Chris Newlands)

Costs and charges are designed to confuse — ousted IA chief (Daniel Godfrey)

Don’t put money on the outcome of the FCA’s fund managers’ study (James Moore)

Does the FCA have the appetite to fend off industry lobbying? (Neil Unmack)


And this article includes a great infographic that encapsulates why there’s so much at stake:

UK funds under management at record £6.8trillion, 60% above pre-crisis peak (The Economic Voice)


What you may have missed..

Video: UK investing is several decades behind the US — John Authers

The most important advice for investors? Do less — Tadas Viskanta

It’s time to get tough on investing gobbledygook

Greater longevity comes at a huge price

Vast majority of fund managers “genuinely unskilled” — study

Sensible Investing TV — half a million video views and counting

Short-termism — why the whole investment industry is to blame


It’s also worth reading this two-part interview with Craig Lazzara if you haven’t yet..

Part 1 — SPIVA: What it is & what it tells us

Part 2 — Poor fund performance is a global problem


What else I’ve been reading..

Do people want to be fooled? (Michael Batnick)

5 things smart beta CAN’T do for you (Josh Brown)

Making predictions is easy. Managing money is hard (Ben Carlson)

Cliff Asness: Investing success isn’t about genius ― it is about staying power (Lucinda Shen)

Human advisers can’t compete with robos on price — & they shouldn’t try (Michael Kitces)

How to tell whether your financial adviser actually knows what they’re doing (Carl Richards)


Have a safe and restful weekend.


Robin Powell

Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.


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