FCA finds no major transition management flaws despite £23m State Street fine

The transition management industry does not warrant large-scale Financial Conduct Authority (FCA) intervention despite State Street being fined almost £23m for overcharging clients.

Transition management - the process of transferring funds between investment managers, markets and products - sees a total of £165bn a year moved for clients such as pension funds. There are 13 providers in the market. The FCA said bad practices in transition management could potentially affect the returns "enjoyed by millions of consumers on their investments". After the first review into the sector, the FCA has advised providers to ensure their controls, oversight and governance arrangements meet regulatory requirements. FCA director of supervision Clive Adamson said: "Transition...