FCA targets ACD 'conflict of interest' in letter to fund managers

In a letter seen by PA's sister title Investment Week, the FCA has detailed a list of key risks including Authorised Corporate Director (ACD) conflicts of interest, liquidity mismatches and poor governance. The FCA highlights the introduction of MiFID II as a safeguard "to ensure customer interests remain central throughout the product lifecycle", but raised concerns regarding the role of the ACD. It has suggested that a conflict of interest may arise if the ACD cannot properly oversee the fund because it is "concerned to avoid a loss of revenue from the investment manager if it wer...