NEWS: FCA commissions reviews into investment firms.

Companies handling investments have had the most skilled persons reports commissioned into their activities by the Financial Conduct Authority in the most recent quarter.

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Between April and June the regulator commissioned 17 reviews, which it orders a third party to carry out when it has concerns about a regulated firm’s activities.

Of these 17, five were commissioned into stockbroking firms, four into investment management firms and three into personal investment firms.  The remaining five were carried out into banks, general insurance brokers and “other” firms.

Most of the FCA’s concerns during the past quarter related to conduct of business, with 12 reviews looking into this.

In December the FCA published a thematic review into the UK’s £600bn wealth management industry.

It revealed that investors at some companies were being offered unsuitable investment portfolios and the FCA said it was considering investigating five firms, including using skilled person reviews to do so.

The FCA said many wealth managers still have to make “substantial improvements” in gathering, recording and regularly updating customer information to support the investment portfolios they manage for customers.

The regulator was been asked whether the reviews it commissioned in the last quarter related to its thematic review but it declined to comment.

During the previous quarter – between January and March – the largest number of the reviews commissioned by the FCA were into banks, with four ordered by the regulator out of a total of 10.

Only two were commissioned into investment-related firms – one into a stockbroker and another into an investment management firm.

The reviews during this period were mainly conducted into client assets.

Compliance Consultant (http://www.complianceconsultant.org) can assist you in all aspects of S166 Skilled Person’s Reports and FCA Enforcement actions, moving fast to protect your reputation and save you £000’s. Contact us on 0207 097 1434.

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Src: http://www.ftadviser.com/2016/08/02/regulation/regulators/fca-commissions-reviews-into-investment-firms-omSA7y5LLfNvm2ue5MAQXN/article.html
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