FCA targets ACD 'conflict of interest' in letter to fund managers

Concerns surrounding risk management

The Financial Conduct Authority (FCA) has written to fund managers to outline the "key risks of harm" that their businesses pose to their customers.

In a letter seen by Investment Week, the FCA has detailed a list of key risks including authorised corporate director (ACD) conflicts of interest, liquidity mismatches and poor governance. FCA begins ACD market probe - reports The FCA highlights the introduction of MiFID II as a safeguard "to ensure customer interests remain central throughout the product lifecycle", but raised concerns regarding the role of the ACD. It has suggested that a conflict of interest may arise if the ACD cannot properly oversee the fund because it is "concerned to avoid a loss of revenue from the investm...