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COMMENT: FCA must ensure fund board independence

Independent boards for mutual funds aren't a panacea – they can be corrupted if not protected

COMMENT: FCA must ensure fund board independence
Photo: iStockPhoto/FN Montage

Few can doubt the Financial Conduct Authority’s irritation over the way excessive fees undermine the returns active managers generate for their clients. But its suggested solutions need examination as well.

Its interim report on the UK's asset management sector, published on November 18, recommended the creation of new oversight boards for mutual funds, to "act independently" and "ensure asset managers are held to account for how they deliver value for money".

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