The UK’s Financial Conduct Authority (FCA) has extended scrutiny of the hedge fund industry and is closely monitoring the activities of US funds with operations in the UK, according to a report published by the Financial Times.
As part of its scrutiny, FCA has begun to vet senior appointments. It has informally vetoed several candidates for jobs following preliminary interviews, the report claims.
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Earlier this month, an FCA delegation visited one of the largest American hedge fund. While the visit was not a ‘formal inspection’, it has nevertheless raised eyebrows among the tightly knit, and once little-regulated, hedge fund community, a person familiar with the matter told the Financial Times.
According to the report, FCA is particularly keen to ensure that US funds’ London-based operations are overseen by individuals who are aware of a primary responsibility to the FCA and not their superiors in the US.
Under the Financial Services Authority (FSA) regime attention was only paid to the 35 largest hedge fund managers in London and assigned them a case officer each.
The new regime will see the FCA involving itself in the affairs of managers across the board, regardless of their size, the report revealed.
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By GlobalDataThe FCA also issued its largest ever fine of nearly EUR1 million to a sole trader for deliberately misleading vulnerable customers for personal gain.
