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
Play French fund CEOs: 'Brexit is a lose-lose situation for all of us'

French fund CEOs: 'Brexit is a lose-lose situation for all of us'

'We'll all lose out - but London is an international city, Paris is not.' Leading French asset management CEOs tell us what they think Brexit will mean for the investment business.

Play Henderson Eurotrust's Stevenson: dealing with European cynicism

Henderson Eurotrust's Stevenson: dealing with European cynicism

Tim Stevenson talks about where he finds his opportunities in the current environment in Europe

Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Read More
Wealth Manager on Twitter