In-house fund dilemma: Wealth managers split over future of products

The Financial Conduct Authority's probe into in-house fund ranges has split the wealth management community, with some groups abandoning propositions but others still keen to enter the space.

The FCA’s concerns about in-house funds were first highlighted in March in its business plan for 2014/15. The regulator said it would assess how wealth managers and private banks effectively control the conflicts of interest that arise when client assets are invested in in-house investments. The issue is a sticky one, with the FCA worried there is a conflict between a firm claiming it is acting in the best interests of its clients by investing them in its own funds, while at the same time taking management fees from the products. The FCA is expected to reveal its findings at the end o...