A review by the UK regulator found a litany of shortcomings in the way Authorised Fund Managers (AFMs) assess value and manage conflicts of interest.

The Financial Conduct Authority’s ‘Review of host Authorised Fund Management firms’ found overall, firms were doing a poor job of justifying their fees to investors.

The FCA requires firms to assess whether fund fees are justified by the value provided to fund investors, by using a set of minimum considerations.

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