FCA issued statement of objections to four asset management firms
This is the first case brought by the Financial Conduct Authority (FCA) under its competition enforcement powers.
The FCA alleges that the firms may have breached competition law by sharing share price information in relation to one or more of two Initial Public Offerings (IPOs) and one placing, shortly before the share prices were set. The FCA’s press release can be found here. The fact of this investigation was publically announced by the FCA in April 2016.
This is the first case brought by the FCA under its competition enforcement powers. This is the first step of the competition enforcement process, following which the firms will have an opportunity to make representations to the FCA before any final decision is made or published.
The FCA continues to remain focussed on competition law, especially in the asset management sector and has demonstrated its willingness to intervene and investigate through its supervisory tools (such as the “on notice” procedure) or enforcement. The FCA’s Final Report on the Asset Management Market Study published in July 2017 concluded that the sector needs to improve its understanding of competition law, including reviewing compliance procedures and training modules.
