The FCA report (details here http://bit.ly/2eMMO1V) calls for an all-in-one fund fee to be introduced to make it easier and more transparent for investors to compare funds and understand what is being taken from their holdings in terms of fees.

The FCA's Interim Report to its Asset Management Market Study found that competition was weak in some areas of the fund sector.

Chris Cummings, chief executive Officer, the Investment Association, said: "The investment management industry is committed to serving the needs of the UK's savers and investors and so we support the FCA's objectives to ensure that competition in the industry works to the benefit of its customers, whether individuals, families or institutions.

“Over the coming weeks, we will engage closely with the FCA to understand its findings and the full implications of potential remedies.

"We are pleased that the FCA has recognised the industry is already leading on improving cost transparency for our clients by developing a new Disclosure Code, and the investment industry notes and welcomes the regulator's strong backing for the project. We look forward to working more closely with the regulator to deliver this important goal."

The Investment Association says it will provide a more detailed response when it has had a chance to consider the proposals in more detail.

• Martin Gilbert, chief executive of Aberdeen Asset Management, said about the FCA review: “I welcome the FCA’s interim report as it brings focus, and a sense of urgency, to confronting some key industry issues impacting customers. There is a need for increased transparency in relation to the services provided, the costs of such and also for ensuring value for money. Asset managers play a vital role in helping investors achieve their financial goals and the FCA’s proposals will help deliver this. We look forward to working with the regulator and the industry to ensure all investors, large or small, receive the best possible service.”

“The FCA’s suggested remedies will also help to strengthen confidence and competitiveness in the UK Asset Management industry, making it more attractive on the global stage by leading the way in best practice.”