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.

FSA to ban Arch Financial Products chiefs and impose £850k fine

FSA to ban Arch Financial Products chiefs and impose £850k fine

The Financial Services Authority is seeking to ban two Arch Financial Products bosses and impose a fine of £850,000, for failings over conflicts of interest.

The watchdog has published its Decision Notices relating to Arch Financial Products, the firm’s chief executive Robin Farrell and its former compliance officer Robert Addison, in which the FSA states its aim of banning Farrell and Addison from regulated financial services.

The FSA also wants to fine Farrell and Addison £650,000 and £200,000 respectively.

The watchdog said it would have fined AFP £9 million for misconduct were it not for the firm’s financial position. Instead, the FSA has issued a public censure.

The FSA said AFP was ‘in a position of trust’ which is undermined by not demonstrating fair management of conflicts of interests.

AFP also pursued an investment strategy which resulted in significant liquidity risks for the funds.

Tracey McDermott, director of enforcement and financial crime, said: ‘When making investment decisions, a fund manager should ensure that it puts investors’ interests ahead of its own and be able to demonstrate that it has managed conflicts of interest.

‘Those with responsibility for managing authorised firms must ensure not only that the firm complies with regulatory requirements but also that they personally act with the highest standards of integrity.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter