LONDON (Reuters) – Investment platforms must document how they select, monitor and deselect funds from the “Best Buy” lists they market to customers, Britain’s markets watchdog said on Thursday.
Investment platforms came under scrutiny in June when the flagship equities fund of then star stockpicker Neil Woodford was suspended after failing to meet redemption requests from investors.
“Firms operating Best Buy lists must construct them impartially and manage conflicts, for example preference for funds offering discounts over formal and objective criteria, lack of independence of research teams and associated governance,” the FCA said in a letter to investment platforms.
“Processes for clear selection, monitoring and deselection of funds on lists should be documented, understood and followed.”
(Reporting by Huw Jones; Editing by Rachel Armstrong)