Earlier this week the Financial Conduct Authority (FCA) released the findings of its asset management market study with relatively mild recommendations compared to the preliminary report released in November. 

Any regulatory change is likely to support a flight to quality in the industry as smaller, less qualified operators struggle to cope with change, as we saw following the Retail Distribution Review in 2012. 

The diminished recommendations will further increase investor confidence in the space, continuing the wave of M&A which has been sweeping the industry since 2013 driven by high fragmentation, vertical integration, positive regulatory changes (pensions freedom and Financial Advice Market Review) and the adoption of technology.