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 Commodity conundrum, beleaguered bonds and a US dilemma

Commodity conundrum, beleaguered bonds and a US dilemma

This week’s episode of Investment Pulse looks at the impact of falling commodity prices on banks, dangers of negative yield curves and whether US equities can continue to deliver.

Play Mirabaud's Pyshkin: The US will continue to grow dividends

Mirabaud's Pyshkin: The US will continue to grow dividends

The global equity income manager has invested half of his fund here.

Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Wealth Manager on Twitter