View more on these topics

SFO launches probe into ETFs

The Serious Fraud Office has launched a review into how exchange-traded funds are marketed and whether it has the capability to prosecute any wrongdoing in the industry.

It has been consulting with bankers and lawyers to see if there is in risk of criminal conduct in the sales process of these funds.

The review comes after the Financial Policy Committee warned about the lack of transparency in the ETF market.

An SFO spokesman the review will not target individual ETFs but will identify any potential risks in the sector.

He says: “We do regular landscape scanning about what problems there might be before they happen. We have consulted several bodies and out of that there has come a slight concern about such things like exchange-traded funds.

“It is not damning the whole industry, or suggesting we are going after individuals or companies, but to review some of the things that concern us.”

Recommended

2

HSBC is cutting 460 advisers over RDR

HSBC Holdings is cutting 700 jobs in its UK retail banking arm, including 460 financial planning managers across the UK. The bank says it is making the changes because of a drop in demand for its advice service due to the retail distribution review. HSBC says around 1,500 advisers will remain in the retail banking […]

Castle Trust appoints ex Burns Anderson CEO

Castle Trust has appointed former Burns Anderson chief executive Mike Hughes as its managing director of mortgages. Hughes, who has also been a director of Legal & General Bank, will be in charge of developing the firm’s partnership mortgage, which is due to launch later this year. He says: “The unique products being developed by […]

2

Iceland retrieval sees FSCS recoveries reach £756m

The Financial Services Compensation Scheme secured recoveries of £756m during 2010/11, with £614m relating to failed Icelandic investment bank Kaupthing Singer & Friedlander. Its annual report and accounts reveals that £21m was recovered from the estates of failed firms over the last financial year, excluding the big banking collapses of Bradford & Bingley, KSF, Heritable […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment