FSA intensifies focus on ACDs in wake of Arch cru

The Financial Services Authority (FSA) is taking a closer look at firms operating as Authorised Corporate Directors (ACD), after warning of potential conflicts of interest.

The regulator said in its Retail Conduct Risk outlook, released today, it had increased its supervisory focus on firms operating as ACDs after warning it was concerned over risks to investors. In the paper it said: "Many of the investment managers used under the Host ACDs model are small, newly established firms which lack the systems and controls found in larger and more established investment managers. "The OEICs managed by these firms often offer strategies with higher risks than offered by more traditional OEICS. We are particularly concerned that host ACDs might lack the speciali...