The Financial Services Authority’s push to ensure wealth-management services were responsibly sold to retail clients has resulted in enforcement probes, the U.K. regulator said.
Wealth-management firms “can expect to see continuing and increasing supervisory focus,” the FSA said in a notice on its website today. The regulator had said it became concerned with the “unacceptable risk” for clients.
The FSA wrote letters in 2011 to chief executive officers at firms that provide wealth-management advice to retail investors after identifying “widespread failings” in the sector. The agency will decide if further regulatory action is needed after interviewing executives at the firms.
The FSA occasionally sends out so-called Dear CEO letters to communicate regulatory concerns it has with senior management at companies.
To contact the reporter on this story: Jeremy Hodges in London at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Aarons at email@example.com