FSA to probe advice firms' fund concentration risk

clock

The Financial Services Authority (FSA) is planning to up its focus on advisers and wealth managers placing large amounts of client money in a single fund, amid fears some firms are not carrying out sufficient due diligence.

In an expansion of its work on suitability, the FSA is understood to have held talks with a number of law firms around concentration risk in certain investment vehicles. The talks centre on the percentage of a firm’s AUM invested in single mandates, or asset management teams, and hark back to previous crises which impacted large funds. As well as looking at amounts invested, their processes may also come under scrutiny. Wealth managers currently send out Request for Proposal (RFP) information forms to asset managers before investing in their funds. However, Investment Week under...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Event Voice: Stepping out of cash into the Credit Sweet Spot

Event Voice: Stepping out of cash into the Credit Sweet Spot

Peter Marsland, Fixed Income Investment Specialist, from Aberdeen discusses the Short Dated Enhanced Income Fund at the June Fixed Income Market Focus.

Peter Marsland, Fixed Income Investment Specialist
clock 08 July 2025 • 4 min read
Investors undergo 'buyers' strike' in June sending order values to two year low

Investors undergo 'buyers' strike' in June sending order values to two year low

Middle East conflict did not deter investors

Eve Maddock-Jones
clock 08 July 2025 • 2 min read
The big questions around re-evaluating risk for the retail investment industry

The big questions around re-evaluating risk for the retail investment industry

Discussions at Global Investment Management Summit

Katrina Lloyd
clock 08 July 2025 • 8 min read
Trustpilot