Fidelity International’s recent move to introduce a performance-based fee is a step in the right direction for the UK fund management industry.

The Financial Conduct Authority’s final report in June shone a harsh light on industry fees. That reckoning is long overdue and we welcome efforts to reform the way managers charge their clients. Our industry is now rightfully being pressured to address the issue of value for money, potentially by looking beyond the standard ad valorem fee model which has served investors poorly.