Welcome to our new website! Let us know what you think..

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
Citywire TV
Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Play AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Henderson International Income trust manager Ben Lofthouse shares his thoughts on recent developments in the tobacco sector in this video.

1 Play Renewable energy: what I found on my solar farm trip

Renewable energy: what I found on my solar farm trip

Renewable energy is attracting a lot of investor interest, so I headed to the UK's largest solar farm to find out more.

Your Business: Cover Star Club

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Nineteen months on from the merger of Quilter Cheviot chief executive Martin Baines says the deal is now paying dividends.

Wealth Manager on Twitter