FCA takes aim at wealth managers over high-risk and high-fee products

'Dear CEO' letter

Cristian Angeloni
clock • 3 min read

The Financial Conduct Authority has slammed wealth management and stockbroking firms over practices that the regulator claims have resulted in harm for consumers.

In a 'Dear CEO letter' published today (8 November), the regulator said some companies have lost consumers "significant sums" to scams and fraud, and have also played a role in enabling money laundering. The FCA added that some firms have also exposed consumers to "inappropriately high-risk investments" and provided poor value for products and services. It highlighted the scale of the sector within the consumer space, with 1.8 million portfolios and 14.3 million stockbroking accounts currently active. Bank of England and FCA outline plans to regulate stablecoins into mainstream ...

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 Companies

Hargreaves Lansdown's Derren Nathan: Companies best placed to absorb NI cost pressures

Hargreaves Lansdown's Derren Nathan: Companies best placed to absorb NI cost pressures

Following Rachel Reeves' Budget

Derren Nathan
clock 21 November 2024 • 4 min read
Liontrust profits sink by a further 28% as AUM continues to decline

Liontrust profits sink by a further 28% as AUM continues to decline

Job cuts of around 25 staff

Linus Uhlig
clock 21 November 2024 • 3 min read
Ninety One takes charge of £17.4bn Sanlam IM mandate

Ninety One takes charge of £17.4bn Sanlam IM mandate

Agreement for 15-year partnership

Linus Uhlig
clock 20 November 2024 • 2 min read
Trustpilot