A group of U.K. asset managers has paid out £34 million in compensation to consumers because the firms did not make it clear to customers how their money was being managed, The Daily Telegraph reported March 5, citing the Financial Conduct Authority.
In an article for the newspaper, Megan Butler, the FCA's executive director of supervision for investments, wrote that the regulator had reviewed 84 possible "closet tracker" funds — those that look like they are actively managed but are in fact passive funds that track benchmarks.
In 64 of these, the FCA required the manager to make things clearer to customers. An enforcement action is ongoing against one firm, Butler wrote.
