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: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter