The Financial Conduct Authority has threatened to clamp down on “outlier” investment firms after finding the majority of independent directors are not challenging fund managers on their fees.
It found that some independent directors were too involved in the collection and analysis of value-for-money information to be able to challenge its suitability subsequently. Others thought they should accept information provided to boards at face value and not challenge how it was calculated.
The focus on fees intensified following the collapse of the Neil Woodford empire and wind-up on his main fund, Woodford Equity income.
