Released 30 June 2021
The Financial Conduct Authority (FCA) has published a review of firms focussing on ‘host’ Authorised Fund Managers (AFMs) and found that, while some firms were operating well, others did not meet FCA standards.
The FCA found weaknesses in governance structures, conflicts of interest management and operational controls. Findings also included some firms referring to funds as if they were solely operated by delegate third-party investment managers or fund sponsors rather than themselves, and a lack of focus on controlling the risk of harm from investors exposed to inappropriate or poor value products.
Further information can be found at https://www.fca.org.uk/news/press-releases/fca-review-finds-weaknesses-some-host-authorised-fund-management-firms-governance-and-operations.