Investors are set to be paid £34m in compensation from asset managers overcharging them for investment funds, with another asset manager being pursued by the FCA.
The news comes as the FCA investigated the widespread issue of ‘closet tracker’ funds.
‘Closet tracker’ funds charge investors higher ‘active’ fund management fees, but deliver fund performance that simply tracks a benchmark or index.
Transparency Task Force founding chair Andy Agathangelou said: “I think this is hugely positive news for investors, particularly long-term pension savers, right around the world; and that it can become a platform for further change and reform.”
“There’s been a smoking gun on the awful issue of closet trackers for years so whilst it’s a case of ‘better late than never’, the FCA deserve great credit for chasing down this issue so tenaciously since their Asset Management Market Study.”
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