Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

JOHCM under investigation by the FCA over dealing commissions

JOHCM under investigation by the FCA over dealing commissions

J O Hambro Capital Management is being investigated by the Financial Conduct Authority.

According to the annual report published by its Autralian parent company BT Investment Management, the fund management firm is being investigated in relation to the ‘eligibility of certain services’ approximating AUS$8.6 million (£5 million) paid for out of dealing commissions. This relates to the period between 2006 and 2016.

BTIM said: ‘It is possible that as part of the investigation the eligibility of other services may also be assessed.’

It added that the likely outcome of the investigation could not be estimated.  

In a statement JOHCM, led by chief executive Ken Lambden (CEO), said: 'We confirm that the Financial Conduct Authority is conducting an investigation in relation to the eligibility of certain services paid by J O Hambro Capital Management Limited (JOHCM) out of dealing commissions between 2006 and January 2016.

'This follows dialogue between JOHCM and the FCA as part of an industry-wide thematic review in 2015. The total cost of the services whose eligibility is currently being specifically examined is around £5m over the course of the 10-year period under review.

'We are cooperating fully with the FCA in relation to the investigation, which is ongoing. No findings have been made by the FCA about whether any breaches have occurred. Further details regarding the investigation are confidential and it would not be appropriate to comment further at this time.

'We are fully committed to serving our clients’ investment needs and acting in their best interests, and are working with the FCA to ensure that the investigation is resolved quickly and appropriately.'

Invesco was fined £18.6 million by the FCA for dealing failings in its fixed income funds back in 2014. Similarly, Aviva Investors was hit with a £17.6 million penalty in 2015 for fixed income trading failings. 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: how Tiller believes it's cracked robo-profitability

Profile: how Tiller believes it's cracked robo-profitability

Ian Cadby and Jonathan Wauton of Tiller Investments believe they have developed the next generation of digital wealth platform.

Wealth Manager on Twitter