The U.K. Financial Conduct Authority (FCA) has directed its attention toward manager practices in the asset management industry that could have the effect of stifling competition in a manner detrimental to investors. The FCA recently surveyed a broad segment of investors, asset managers and other stakeholders to determine the scope of this problem, publishing the results in its Asset Management Market Study – Interim Report, MS15/2.2. Fund managers should carefully review this exhaustive report to understand potential future FCA examination topics, while investors can use the findings to enhance their diligence of funds prior to investing. This second article in a two-part series examines the report’s findings concerning the performance of actively managed funds, the amount of charges passed on to investors by managers and certain deficiencies in fund cost-control efforts. The first article evaluated fund fees and competition through the prisms of platform usage, manager compensation and fund governance. For coverage of additional issues pertinent to U.K. managers and investors, see “Dechert Partners Discuss How Cross-Border European Fund Managers Can Prepare for Brexit’s Momentous Regulatory Effect” (Apr. 6, 2017); and “FCA Emphasizes Need for Fund Managers to Monitor and Clearly Communicate Financial Benchmarks and Investment Practices” (Apr. 28, 2016).