Articles - Conflicts of interest between asset managers and customers


 The FSA has published a report on the importance of managing conflicts of interest in asset management.

 Why do conflicts of interest matter in asset management?

 Asset managers act as agents for their customers, making ivnestment decisions in financial markets on their behalf. Confidence in the integrity of asset managers when acting on behalf of customers is central to the relationship of trsut between the industry and its customers. This means that when making investment decisions, or buying products and services for customers, asset managers must always act in customers' best interests and put customers' interests ahead of their own. Similarly, asset managers must treat all their customers fairly.

 Acting as an agent for customers may create conflicts between the interest of a firm and its customers or between the interests os different customers. Policies to properly manage conflicts of interest mean customers avoic unnecessary costs and have fair access to all suitable investment opportunities. Properly managing conflicts improves the returns earned by customers and enhances general confidence in the UK asset management industry.

 To view the full publication 'Conflicts of interest between asset managers and their customers: Identifying and mitigating the risks' please click here

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