Telephone 020 3813 2890 for a free no obligation chat about your regulatory requirements with one of our compliance consultants.
Registered in England and Wales as limited company number 07626537 - Registered Office 120 Pall Mall, London, SW1Y 5EA
Here to help with Regulation and Compliance
FCA Supervision Strategy Letter: Investment Firms, Asset Managers, Alternatie Investment Firms
FCA Supervision Strategy Letters
03 February 2020
The FCA has issued a number of Dear CEO letters over the last week. There has been one in relation to Portfolio Strategy for Investment Firms, another for portfolios of Asset Managers and a third to Alternative Investment Firms on portfolio strategy.
Dear CEO Letter: Alternatives Supervision Strategy
The Dear CEO letter to alternative investment firms outlines the FCA’s view of the key risks of harm that this sector pose to its customers/markets and lays out the regulator’s supervisory strategy, highlighting certain priorities, which include:
The FCA’s letter notes that firms may be asked to partake in one or more pieces of work related to these specific priorities and that the regulator expects Firms to take action as required.
To read the Dear CEO Letter in full, click here.
The Dear CEO letter to Asset Management Firms outlines the FCA’s view of the key risks of harm that this sector poses to their customers or the markets in which they operate. In particular the FCA wants firms to consider how certain risks might be present at firms and how they should be mitigated. In particular the regulator sought to highlight the following to firms:
The FCA advises that, amongst other ongoing work in 2020, they will be undertaking work during the first half of the year to understand how effectively firms have undertaken value assessment. They will seek to evidence meaningful challenge at AFM boards on proposals made by the executive, including on costs, fees and product design.
The FCA have also reiterated that they expect Firms to ensure that funds’ objectives are clear, fair and not misleading and that they comply with the new rules around objectives disclosure (that resulted from AMMS) as they assess and authorise investment funds.
To read the Dar CEO letter in full, click here.
The Dear CEO/Director Letter to Financial Advisers sought to highlight key areas of concern the regulator has with these financial advice firms. In particular, the FCA specifically detailed concerns over:
All points raised within the letter should be considered by Firms and discussed with fellow directors and/or the Board to agree what further action should be taken. Principal Firms are also reminded to share the contents of this letter with their appointed representatives.
To read the Dear CEO letter in full, click here.
Read our latest articles, news and views affecting compliance and regulation in the UK Financial Services Industry.
Please contact our Compliance Support Team for a free no obligation discussion of your regulatory requirements and how our regulatory & compliance consultants can help your business move forward compliantly.
Call by Telephone:
(020) 3813 2890