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.

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 Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: UBS' robo boss on what his tween can teach the industry

Profile: UBS' robo boss on what his tween can teach the industry

Co-head of UBS SmartWealth Shane Williams explains the simple life lessons missed by the first wave of robo pioneers

Wealth Manager on Twitter