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Adviser engagement with fund managers following FCA's SDR rules

Journalist: Ima Jackson-Obot, FTAdviser

ended 06. December 2023

Hello advisers,

As part of the new rules, distributors must communicate the labels and provide access to consumer-facing disclosures to retail investors, either on a relevant digital medium for the product or using the channel they would ordinarily use to communicate information. 

They must also keep the labels and consumer-facing disclosures up to date with any changes that the firm makes to a label or the disclosures.

Following on from the introduction of the new SDR and labelling rules, will advisers go even further in how they engage with fund managers, as a result? How much more likely, as an adviser are you to use an asset manager who actively engages with the management of the company being invested in, to influence the activities or behaviour of investee companies?

Thanks

Ima

1 responses from the Newspage community

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This is a simple one, if a firm is not already actively engaged with fund managers with whom they are trusting client assets then they shouldn't be using them.
In terms of communication and access for retail investors, technology is the answer. A client can access all relevant disclosures, risk warnings, and holding summaries within just a few clicks on an app or an online portal. There really is no excuse for this not being in the hands of the investor and automatically updated.