Clive Adamson spoke on FCA's approach to supervising wealth management and private banking firms. He highlighted FCA's focus on putting the needs of the customer first and explained FCA's plan to conduct a series of individual firm risk assessments. The assessments will look at business models, rather than internal controls and FCA will carry out increasing thematic reviews. He said FCA would launch its Wealth Management and Private Banking Department on 15 July. He moved on to look at work already completed, such as preparatory work for the Retail Distribution Review, the focus on management of money laundering risks and safeguarding the integrity of client assets. Finally, he noted as areas firms should focus on:

  • oversight arrangements;
  • ensuring customer information is recorded and kept up to date;
  • management of conflicts of interest;
  • delivering the services customers sign up for;
  • ensuring customers' funds are legitimate;
  • checking customers' portfolios are consistent with their investment objectives; and
  • sending out clear periodic reports.

(Source: FCA Speaks on Wealth Management)