The FCA is investigating four asset management firms over allegations they have broken competition law in the first case of its kind.
Artemis Investment Management, Hargreave Hale, Newton Investment Management and River & Mercantile Asset Management are said to have shared information relating to one or two IPOs and one placing, shortly before the share prices were set.
In 2014 Artemis and Newton shared information about the price they would pay for shares in an IPO while in 2015, Newton, Hargreave Hale and River & Mercantile exchanged information about the price they intended to pay for shares in relating to one IPO and a placing.
The firms have been issued with a statement of objections, which notifies them that the FCA thinks they have infringed competition law and allows them the opportunity to respond.
The FCA says it will “carefully consider any representations from the firms before deciding whether the law has been broken”. This is the first time the FCA has used its competition enforcement powers.