The Transparency Task Force has predicted a “fierce and fiery” opposition to the Financial Conduct Authority’s proposals for the asset management industry.

TTF founding chair Andy Agathangelou’s comments follow the publication of the FCA’s interim report on the asset management industry, in which it has found “weak price competition”. Agathangelou said that based on what he has read, the FCA knows what needs doing and they are willing to take on the industry to bring about the change that it needs.

“I predict fierce and possibly fiery opposition to the FCA’s proposals by the lobbyists and trade bodies that would like to maintain the ‘sustained high profits’ the sector has enjoyed at the expense of the consumer for many, many years.

“I think today could become a watershed moment in the history of financial services regulation. The people who are there to protect the consumer are now serious about doing exactly that[…]There will be ripples right around the regulatory world today, I’m sure, and it might just be that the UK becomes a world-leader in financial services regulation that our post-Brexit world needs us to be.”

The Investment Association chief executive officer Chris Cummings said the industry is “committed to serving the needs of the UK's savers and investors”. Cummings said the IA supports the FCA's objectives to ensure that competition in the industry works to the benefit of its customers, whether individuals, families or institutions.

“Over the coming weeks, we will engage closely with the FCA to understand its findings and the full implications of potential remedies. We are pleased that the FCA has recognised the industry is already leading on improving cost transparency for our clients by developing a new Disclosure Code, and the investment industry notes and welcomes the regulator's strong backing for the project. We look forward to working more closely with the regulator to deliver this important goal."

In addition, Cardano head of clients Richard Dowell said: “We have long been concerned about transparency in the fiduciary management industry and have been calling for improvements in this area for many years. Much work has previously been conducted around costs and charges, but little focus has been placed on the transparency of performance. We are pleased to see the FCA’s intention to require greater and clearer disclosure of fiduciary management performance, which we see as a much needed and positive step.”

Also commenting, Punter Southall head of investment consulting Danny Vassiliades said: “This is an important and necessary review. The FCA is right to highlight the positive role of investment consultants, but also to shine a light on what are clear questions and concerns for parts of this market.”

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