Fund groups to avoid fines over 'cash for access'

Fund groups found to have used commissions to pay for access to corporate executives will not face financial penalties, the FCA has said.

The regulator does not intend to fine fund groups which acted outside investors' best interests by using client commissions to pay brokers to secure meetings with senior company executives. Ed Harley, head of the regulator's asset management division, told the FT that firms were not focusing enough on getting value for money, but said the FCA will not treat such breaches as a "blatant disregard for the rules" and will not take "strong action" against them. In March this year, Harley told the paper fund groups could face large fines if found to have broken the rules. His comments ca...