Europe’s main securities watchdog will examine whether performance fees charged by asset managers are being applied fairly, as a growing number of fund houses look to implement new structures that more closely align performance with the charges levied on investors.

The probe by the European Securities and Markets Authority, planned for next year, comes in the wake of scrutiny from the UK’s Financial Conduct Authority. Earlier this year, the FCA criticised the country’s £7tn asset management sector for failing to deliver performance in line with the fees they charge.