FCA tells buy-side CEOs that market abuse is a supervisory priority for 2025
Hot on the tail of the Dear CEO letter to wholesale brokers, the latest FCA letter to asset managers and alternatives cites the reduction of financial crime and market abuse within their broader supervisory strategy.
This Dear CEO letter, from Camille Blackburn the FCA’s Director of Wholesale Buy-Side reveals that the UK regulator will be conducting targeted work in the area of financial crime and market abuse.
The FCA prompts asset managers that they should be alert to the risk that they could facilitate financial crime and the importance of having robust systems and controls to mitigate this risk. Where the FCA identifies weaknesses in controls they will conduct reviews in the areas such as anti-money laundering controls in private market funds.
In addition, the FCA repeats that market abuse undermines market confidence and integrity, and that having robust systems and controls are crucial in mitigating this risk.
The regulator closes with a reminder that they expect firms to:
- discuss this letter with their Board, Executive Committee, and accountable Senior Managers; and
- ensure that their market abuse controls enable them to discharge obligations under the Market Abuse Regulation.
If you would like support with your Market Abuse Risk Assessment framework to help prevent issues like insider trading and market manipulation before they occur, please get in touch.
