Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Chris Macdonald: we don't fear FCA in-house funds probe

Chris Macdonald: we don't fear FCA in-house funds probe

Chief executive officer of Brooks Macdonald has welcomed the FCA's decision to launch a probe into how wealth managers use in-house funds.

The probe will form part of the FCA's larger conflicts policy framework, under which the financial watchdog requires appropriate controls to be in place.

While former Wealth Manager cover star Chris Macdonald (pictured) described the decision to make sure conflicts are managed as a 'sensible piece of work', he told Wealth Manager he felt the profession does not have much to fear.

'For ourselves, in-house funds are a very small part of our proposition, so it’s not a major issue.

'As long as it’s quite clear in people’s investment propositions what their stance is, and that its well explained, and the fee rates are correct then I don’t see it as an enormous issue. If it’s not [transparent], then clearly it is an issue.'

Macdonald hinted wealth management firms who use their in-house funds under an opaque film could suffer from the FCA's probe and would have to consider changing their propositions.

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter