Qualified advisers answering your
Financial Questions
call 0800 092 1245

FSA slams controls in financial sector

The Financial Services Authority (FSA) has this week sent out a "Dear CEO letter" to 1,000 chief executives within the insurance, asset management and investment banking community demanding that "chaotic controls" regarding the handling of client assets are addressed immediately. Accompanying the letter was a report put together by the FSA over the last six months which detailed a number of major concerns regarding the protection afforded to client funds and client assets within the financial industry.

While it would be wrong to suggest that all financial institutions have operational issues regarding compliance with FSA regulations, we have seen an increase in the number of penalties and censorships over the last few months. There is a growing concern within the FSA that client funds and client assets are not as well protected as they should be with some firms apparently operating fairly "lax" internal operating systems.

Even though a number of companies have been specifically highlighted as "giving concern" to the FSA, the industry as a whole has been warned that future regulatory visits will focus upon the points highlighted in the letter and unless improvement is seen immediately there will be further action. This is not exactly the kind of news which gives UK investors confidence in the system or the regulator!

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details