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 Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: from Batman Live to commodity beta

Profile: from Batman Live to commodity beta

Charteris may be a family affair, but the company is not at any risk of turning sentimental

Wealth Manager on Twitter