FCA says study of asset managers to focus on fees

LONDON (Reuters) - Britain's financial regulator said on Wednesday its sweeping study of the multi-trillion-pound asset management sector would begin this year and would focus on the fees charged by industry players.

The Financial Conduct Authority (FCA) had previously said it was minded to conduct a so-called market review into the sector using its new competition powers, but had given few specifics.

"Our focus is very much on asset managers, in particular acting as good agents for their clients and ensuring that they carry out that role properly," Chris Woolard, FCA director of strategy and competition, told the watchdog's annual meeting.

"Later this year we are going to conduct a market study looking quite broadly at the asset management sector. We expect to publish terms of reference for that later in the year," Woolard added.

FCA Chief Executive Martin Wheatley later told reporters the broad study would be complemented by new European Union rules coming into force in 2017 to increase transparency in fees.

"The question ultimately is, are the layers of cost in the asset management industry for the provision of service at the level we would want them to be?" Wheatley said.

(Reporting by Huw Jones; Editing by Pravin Char)