The UK’s Financial Conduct Authority(FCA) has issued this open letter to the CEOs of wholesale brokers, across several asset classes. The letter identifies some issues observed by the FCA at broker firms, focusing on four issues that could be causing “harm”:
- Compensation arrangements
- Governance arrangements
- Dealing with conflicts of interest
- A culture and mindset that fails to recognise the risk of abuse.
We can thus expect further scrutiny in this regard. The letter refers to an update in March 2021.