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
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Thomas Miller explains its post-restructure plans

Profile: Thomas Miller explains its post-restructure plans

Thomas Miller Investment’s (TMI) head of wealth Matt Phillips has strong opinions about many things

Wealth Manager on Twitter