The UK’s Financial Conduct Authority said asset managers need to justify the fees charged on their funds as competition within the industry picks up.

Its latest report on Thursday, the FCA said that while many firms have better practices in place, some still have work to do. The regulator said it had been working closely with the industry to encourage a greater focus on assessment of value to get better outcomes for investors.

“It is vital that firms make sure they are not solely focused on a fund’s profitability over value for money for investors.” Camille Blackburn, director of wholesale buyside at the FCA, said in a statement Thursday. “The Consumer Duty, which is now in place, further supports our expectations in this area.”

The FCA’s review found that firms are putting too much emphasis on comparable market rates to justify their fees, rather than conducting an assessment using the full range of considerations. The watchdog added that it expected companies to make improvements where required.

The review follows the introduction of the long-planned Consumer duty last month that requires financial firms to ensure they act in the best interests of retail customers on a range of issues.