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.

PRA to cap asset growth and enforce external staff on fund firms

PRA to cap asset growth and enforce external staff on fund firms

The Prudential Regulation Authority (PRA) has assumed powers to impose external members of staff on asset managers, banks and insurers, and to cap asset growth in companies it is concerned about.

In a statement released yesterday setting out how it will regulate failings in the ‘culture’ of regulated businesses and enforce additional oversight on boards it does not believe are acting independently.    

It added that it had already entered into an agreement with an unspecified business which would limit its asset growth to a set percentage over a 12-month period.

‘While the PRA looks to firms to co-operate with it in resolving supervisory issues, it will not hesitate to use formal powers where it considers them to be an appropriate means of achieving desired supervisory outcomes,’ it said in a statement.

While primarily aimed at the banking sector following a series of rate-setting scandals, the powers are also applicable to asset managers and insurers which fall under the macro-prudential regime.

The powers were laid out in the PRA’s Fundamental Rules, replacing the previous Principles for Business.


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 Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter