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.

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
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 Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Wealth Manager on Twitter