Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will take steps to ensure that Asset Fund Managers automatically switch small investors' funds into less costly management options in compliance with Financial Conduct Authority guidance.

The Financial Conduct Authority (FCA) sets the overall conduct standards for asset managers, including the requirement to treat customers fairly. The FCA has a broad suite of supervision and enforcement powers, to ensure financial services businesses comply with their rules.

Following a comprehensive Market Study, the FCA have published new rules and guidance, aimed at driving better competition in the sector and allowing customers to find better value services. Specifically, the new regulations will require firms to publicly report on whether clients should be moved to lower cost share classes, where they are invested in more expensive classes which are otherwise the same. They will also make it easier for investors to be switched on to less costly management options by removing the need to secure express consent from investors.