Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

FCA launches probe into wealth managers' use of in-house funds

by Dylan Lobo on Mar 31, 2014 at 08:07

FCA launches probe into wealth managers' use of in-house funds

The Financial Conduct Authority is to launch a probe into how wealth managers use in-house funds.

The news was revealed in the financial watchdog's annual review, with the regulator concerned that there may be conflicts of interest at work.

'We will assess how wealth managers and private banks effectively control the conflicts of interest that arise when client assets are invested in in-house investments,' the FCA said.

The business review also revealed the FCA's funding requirement would rise by £6.3 million to £452 million.

The news increases the pressure on wealth firms after the regulator launched an investigation into suitability in 2011.

This included a letter to the chief executives of a number of wealth firms asking for evidence they were meeting suitability requirements.

Last week the FCA showed it had not lost focus of the issue when it hit Santander with a £12.4 million fine after finding several failings in its investment advice process.

The FCA is also believed to have made increasing use 'arrow' (unannounced and targeted) visits on wealth managers where files dating back a decade are analysed.



leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets

From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet