June 28, 2017 / 6:23 AM / a year ago

UK orders sweeping changes to boost funds industry transparency

LONDON, June 28 (Reuters) - Britain’s markets watchdog proposed on Wednesday a suite of changes to the 7 trillion pound ($8.97 trillion) asset management industry in order to improve transparency and value for money for customers.

In a long-awaited report, the Financial Conduct Authority said it proposed to strengthen the duty of fund managers to act in the best interests of investors, and require fund managers to appoint at least two independent directors to their board.

It also said it would support the disclosure of a single, all-in fee for investors - stopping short of mandating such a move immediately.

“We have listened carefully to the feedback we received in response to our report last November,” FCA Chief Executive Andrew Bailey said in a statement.

“We have put together a comprehensive package of reforms that will make competition work better and help both retail and institutional investors to make their money work well for them.”

It also stopped short of an immediate referral to Britain’s competition authority of the market for institutional advice. ($1 = 0.7804 pounds) (Reporting by Huw Jones, editing by Simon Jessop)

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