FCA takes aim at wealth managers over high-risk and high-fee products

'Dear CEO' letter

Cristian Angeloni
clock • 3 min read

The Financial Conduct Authority has slammed wealth management and stockbroking firms over practices that the regulator claims have resulted in harm for consumers.

In a 'Dear CEO letter' published today (8 November), the regulator said some companies have lost consumers "significant sums" to scams and fraud, and have also played a role in enabling money laundering. The FCA added that some firms have also exposed consumers to "inappropriately high-risk investments" and provided poor value for products and services. It highlighted the scale of the sector within the consumer space, with 1.8 million portfolios and 14.3 million stockbroking accounts currently active. Bank of England and FCA outline plans to regulate stablecoins into mainstream ...

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


More on Companies

The company reported an adjusted pre-tax profit of £455m last week, compared to an expected £441.6m and well ahead of the previous year’s loss of £178m.

Stock Spotlight: easyJet soars to profitability as dividend return opens stock to income seekers

Recovering from pandemic lows

Elliot Gulliver-Needham
clock 05 December 2023 • 3 min read
Richard Goodall, Marlborough’s CEO (pictured).

Marlborough rebrands business in 'ambitious' growth drive

Centralised under one brand

Laura Miller
clock 05 December 2023 • 1 min read
Mike O'Shea (pictured) is Premier Miton's chief executive officer.

Premier Miton takes 60% profit hit as net outflows climb to £1.1bn

Demand for equity funds fell 37%

Valeria Martinez
clock 05 December 2023 • 2 min read