Daniel Godfrey, who takes over from departing chief executive Richard Saunders today, told City A.M. fee levels would be determined by market forces but warned a drop in fees would not happen immediately.
“It will take time because people have to change their business models and they can’t change them over night. If you’re talking about radical change to the business models, you’re looking at five to 10 years,” he said:
He added that an increasing number of people taking a “DIY” approach to investing could also help propel a drop in fees.
The IMA last week helped launch a code of conduct on fees for asset managers in the pensions industry, along with a number of other industry groups.