It’s coming: UK changes underway

This point was made by Peter Hugh-Smith, Managing Director of Link Fund Solutions, at The NED’s June 19 event. Link is the largest independent fund manager in the UK. It supports managers with about £60 bn in assets from 40 different investment managers. Peter Hugh-Smith added that the UK has a strange structure that is not replicated anywhere else in the world. For a corporate entity such as an OEIC there is only one director who is an authorised corporate director.

Another topic, raised on number of occasions at this event, is whether what the FCA has mandated (independent directors on the boards of the fund managers) will achieve what the regulator wants to achieve. Changing the composition of manager boards is a means to an end for the FCA. The end is to stimulate price competition between managers and stop fund investors from being fleeced by asset management groups. In particular, it wants to do something about what it considers to be their exorbitant fees. But putting independent directors on to the boards of the fund manager may well not be the best way to do this.

To read more of this article see the June issue of The NED.