What the FCA wants to achieve

The FCA’s requirement to have independents on asset managers’ boards is just a means to an end. The FCA believes it will help protect investors and bring down fees. But there is no guarantee that this will occur. If doesn’t what will do the FCA do next?

The board’s job is to balance the interests of the investors in its funds with the asset manager’s shareholders. The FCA believes that UK manager boards have got the balance wrong: they have too often favoured their own shareholders at the expense of their investors.

It believes this has happened because there have been no independents present at board meetings to speak up for the investors.

To read more on this story, see the January issue of The NED.