The Financial Conduct Authority (FCA) has issued warnings to three senior managers at an unnamed discretionary fund manager (DFM) for breaching two principles within its Statements of Principle for Approved Persons.
The warning notice statement shows Principle 1 (integrity) and Principle 6 (due skill care and diligence) were the areas of conduct breached by the trio. The FCA stated it "considers that the individuals were involved in a coordinated arrangement that was in place at the firm that led to customers suffering financially, whilst the firm benefited". A business model was set up by the trio which the watchdog said was "intended to maximise the flow of retail customer funds for onward investment into high-risk illiquid bonds operated by connected persons and business associates". "This ...
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