Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

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

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 or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter