(Bloomberg) --
The Financial Conduct Authority, the U.K. watchdog, is probing compliance by fund management groups with new governance rules as it seeks to improve accountability in the industry following the collapse of a high-profile investment fund, the Financial Times reported, citing people familiar with the matter.
The FCA is holding closed-door discussions with companies to check effective steps are being taken to root out funds that provide poor value for money, the newspaper reported.
New rules introduced last year require investment managers to carry out annual value assessments for each of their funds. The framework was established by the FCA following its asset management report, which uncovered weak price competition and high fees. However, it has taken on new urgency in the wake of the blow-up last year of the flagship fund managed by famed U.K. money manager Neil Woodford, which dented trust in the industry, the newspaper reported.
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