FCA: Five asset management trends threatening financial stability

Annual review of the sector

Mike Sheen
clock • 2 min read

The Financial Conduct Authority (FCA) has highlighted five trends within the investment management sector it warns could "threaten stability and resilience" of financial markets.

In its annual review of the sector, published on Thursday (10 January), the FCA identified outsourcing, the growing use of sophisticated technology and liquidity levels as issues it is actively monitoring. FCA warns asset management industry facing cyber risks Firstly, the regulator said the growing use of outsourcing to third-party technology providers means that should there be a failure of one of more of the "small number" of firms relied upon for these services, the proportion of assets which could potentially be affected by an IT failure is mounting and thereby increasing the lik...

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
member?

Login

More on Regulation

SEC chair Gary Gensler to step down from post in January

SEC chair Gary Gensler to step down from post in January

Once Donald Trump takes office

Valeria Martinez
clock 22 November 2024 • 1 min read
ISA reform 'under review' after absence in Budget and Mansion House

ISA reform 'under review' after absence in Budget and Mansion House

Financial Services Agenda pledge

Cristian Angeloni
clock 20 November 2024 • 3 min read
Fidelity International to adopt FCA 'Sustainability Focus' label for trio of funds

Fidelity International to adopt FCA 'Sustainability Focus' label for trio of funds

Evaluating other SDR labels

Valeria Martinez
clock 18 November 2024 • 1 min read
Trustpilot