Coming to the UK: value reports

The assessment of value reports that UK AFMs are required to submit, from October onwards, will determine whether the FCA has been successful in the goals that it has set itself for its fund governance reforms.

From now on, AFMs will have to submit an annual assessment of value that must be approved by the board. In this report managers will have to justify their fees, fund by fund. Directors of AFM boards are now required to measure the value that their funds are delivering to investors and, should any changes need to made, explain what these are. The intention is to stop managers delivering mediocre to poor performance along with high fees. AFM boards will also have to be clear about the charging structures of their funds.

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