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FCA's in-house funds probe enters next stage, as audit trails scrutinised

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FCA's in-house funds probe enters next stage, as audit trails scrutinised

The Financial Conduct Authority's (FCA) review of the use of in-house funds among wealth managers is gaining momentum, as audit trails come under the microscope.

Wealth Manager can reveal the review has entered its second stage and will see the regulator conduct so-called 'deep dive' audits amongst a number of private client investment divisions that allocate large sums to internal funds. It is understood that the FCA will closely examine the documentation, systems and controls concerning the decision-making process behind allocating to in-house funds.

The first stage came to a conclusion after the first quarter and involved the FCA looking at the sums that wealth management divisions allocate to in-house ranges. 

The review is set to conclude at the end of the third quarter. The FCA declined to comment on the scale of the review as it is ongoing. The regulator has previously said it is assessing how wealth managers and private banks control the conflicts of interest that arise when client assets are invested in in-house investments.

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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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