Wealth managers have reasons to be cheerful after the Financial Conduct Authority's review of in-house funds found most behaviour above board.
In-house funds have obvious potential for conflicts of interest. But in its sample of 18 wealth managers and private banks, the regulator found firms took appropriate steps to manage this risk, and saw no incentives for employees to prioritise in-house funds. Struggling in-house managers could expect their funds to be placed on probation along with other underperforming funds. The FCA’s conclusion – that there is no evidence of any significant failure – is welcome news to a financial services industry struggling to regain public trust. At the same time, there is room for improvement. ...
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