You are here: Home - Investing - Experienced Investor - News -

Four fund groups investigated under competition rules

0
Written by:
29/11/2017
The Financial Conduct Authority (FCA) says four UK fund management groups may have broken competition law, by disclosing the price they intended to pay for new Initial Public Offerings (IPOs).

IPOs are when a company’s shares are offered to the market for the first time. The process is supposed to be competitive, with different companies bidding for the shares to set the price.

The FCA has issued a ‘statement of objections’ to Artemis Investment Management, Hargreave Hale, Newton Investment Management and River & Mercantile Asset Management, alleging that the four firms shared information by disclosing the price they intended to pay, accepting such information, or both before share prices were set by the market.

The FCA said: “The sharing generally occurred on a bilateral basis and allowed firms to know the other’s plans during the IPO or placing process when they should have been competing for shares.”

Newton, Hargreave Hale and River & Mercantile are accused of disclosing and/or accepting information about the price they intended to pay for shares in relation to one IPO and a placing in 2015, while the accusation against Artemis relates to a separate 2014 IPO.

The FCA said the provisional findings “may not necessarily lead to an infringement decision” and all four firms will be given the opportunity to respond to the regulator.

All four groups have confirmed that they are co-operating with the regulator in its investigation. This is the first case the FCA is bringing using its competition enforcement powers.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week