2016年-FCA英国金融行为监管局_ms15_2_2_annex_9_22页_650kb

MS15/2.2: Annex 9 - International Comparisons Summary

Core Content

This document presents an interim report on international comparisons of asset management markets, focusing on regulatory and market initiatives that could inform the UK's market study. The report examines key areas such as consumer education, cost transparency, value for money, governance, and evaluation of asset managers, drawing insights from the United States and the Netherlands.

Main Areas of Comparison

The following are the key areas of interest and the initiatives implemented in the selected jurisdictions:

1. Improving Consumer Education and Awareness

• Objective: Enhance investor understanding of fund costs and their long-term impact.
• Initiatives:
  • Disclosure of fees and costs: Funds must disclose costs per $1,000 investment and provide more transparent information.
  • Investor bulletins and guidance: Regulators issue guides to help investors understand fund objectives, strategies, and risks.
  • Tools and calculators: Initiatives such as the FINRA Fund Analyser allow investors to estimate the value and impact of fees on their investments.
  • Total cost of ownership (TCO): A standardized measure to show investors the full cost of investment services, including transaction costs.

2. Creating Tools for Consumers

• Objective: Enable investors to compare and understand the cost and performance of funds.
• Initiatives:
  • Fee comparison tools: Platforms that allow investors to compare fund fees and performance.
  • Choice architecture modification: Encouraging providers to design user-friendly online interfaces that guide investors toward better decisions.
  • Smart defaults and layered product offers: Helping novice investors by defaulting to cost-effective options and presenting products in a structured manner.

3. Driving Value for Money

• Objective: Promote cost-effective investment practices and reduce conflicts of interest.
• Initiatives:
  • Fiduciary duty for advisers: In the US, the DOL Conflict of Interest Rule requires advisers to act in the best interest of their clients, reducing the risk of conflicted recommendations.
  • Share class selection: Regulators in the US are addressing the issue of advisers recommending higher-cost share classes.
  • Closet trackers/index huggers: The AFM in the Netherlands has identified funds that closely follow benchmarks but charge active management fees, and has recommended cost adjustments or a shift to active management.

4. Improving Governance

• Objective: Strengthen fund board independence and oversight.
• Initiatives:
  • Independent directors: In the US, the Investment Company Act of 1940 requires that at least 40% of fund board members be independent. The industry has adopted a "super-majority" standard of at least 75% independent directors.
  • Board codes of conduct: Encouraging improved standards for board behavior and oversight of fund operations.

Key Observations

• Market Size and Growth: The US is the largest asset management market globally, with significant growth in passive strategies.
• Distribution Channels: The US has five main distribution channels, with the retirement plan channel being the most dominant.
• Regulatory Focus: The US and Netherlands have both focused on cost transparency, conflict of interest, and investor protection.
• Consumer Behavior: Self-directed investors in the Netherlands often lack awareness of investment options and tend to make sub-optimal decisions.
• Index Huggers: The Netherlands has identified a significant number of funds that closely follow benchmarks but charge active management fees, which may not justify the cost.

Limitations and Context

• The international comparisons are limited by data availability and societal differences.
• The findings are contextual to each jurisdiction and should be considered alongside the UK's specific market dynamics.
• The report is not a comprehensive comparative analysis, but rather a focused exploration of key areas relevant to the UK's market study.

Key Players and Initiatives

United States

• SEC: Focuses on transparency, fee disclosure, and governance reforms.
• DOL: Introduced a fiduciary standard for retirement investment advisers.
• ICI and FINRA: Provide guidance and tools for investors and regulators.

Netherlands

• AFM and DNB: Collaborate on cost transparency, regulatory analysis, and investor protection.
• TCO (Total Cost of Ownership): Implemented as a Comparative Cost Standard to improve cost understanding.
• Closet Trackers Report: Published in 2016, highlighting the need for cost alignment with investment strategies.

Conclusion

The international comparisons highlight a number of regulatory and market-driven initiatives that could be relevant to the UK's asset management sector. These include enhancing cost transparency, reforming fiduciary standards, improving consumer education, and modifying choice architecture to support better investment decisions. The report encourages the UK to consider these initiatives in light of its own findings and to explore similar approaches in its regulatory framework.