The FCA has published a thematic review report on the conflicts of interest arising from wealth management and private banking firms’ use of in-house investment products (TR14/19).

The FCA found that most firms recognised the potential risks arising from conflicts of interest.

However, the FCA noted shortcomings in the following areas:

• firms did not articulate clearly enough how in-house investment products were aligned with customers’ interests;
• some firms did not monitor the level of in-house investment products in customer portfolios; and
• communications with customers were not always clear regarding the extent to which in-house investment products might feature in customer portfolios.

Copies of the thematic review: http://bit.ly/1xShWOH

and related  press release : http://bit.ly/1zUH6v6