CFA Institute's Global Investment Performance Standards will be used by fiduciary managers when presenting their offerings' performance to U.K. trustees, after the Competition and Markets Authority endorsed the standards Dec. 10.
The new standards follow the U.K. Competition and Markets Authority's investigation into investment consultants and fiduciary managers, which require firms to use standardized methodologies in tender submissions and when marketing to potential clients.
"As soon as a client expresses interest in the managers' investment strategies, managers should supply multiyear information on relative return," Iain McAra, director of the global investment performance standards at CFA Institute said in an interview.
Mr. McAra added that the standards became effective Dec. 10. The Financial Conduct Authority could choose to ask if managers are complaint with the CMA endorsed standards as part of regular supervision, he said.
The standards are expected to help trustees compare managers, added Karyn Vincent, senior head of global industry standards for CFA Institute, in a news release. "Prospective and existing clients of fiduciary managers benefit from a performance standard by having a greater degree of confidence in the information presented to them," she said.
