Asset managers pay out £34m compensation after FCA action on 'closet trackers'; Provider faces enforcement action

Follows criticism in Asset Management Market Study

Katrina Lloyd
clock • 3 min read

The Financial Conduct Authority (FCA) has said a number of asset managers have taken the step of paying £34m in compensation to investors who overpaid for 'closet tracker' funds following an investigation by the regulator, while another fund group faces enforcement action for "very misleading" marketing material, according to The Telegraph.

The groups involved will reimburse investors for the higher active charges they paid on what were in reality index tracker funds, although the move is not part of an official redress scheme from th...

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