Private wealth management firms told of FSA changes

Private wealth management companies have been told by the Financial Services Authority (FSA) of a new consultancy into a number of areas.

A consultation - which closes June 25th 2010 - has been revealed and suggests financial penalties for individuals or firms that breach short-selling rules.

Short-selling involves selling assets before they drop in price, at which point investors buy back the shares and enjoy profits from a subsequent rise in value.

Private wealth management organisations may want to take heed that firms could be suspended from undertaking certain activities if they are found to break the regulations.

Furthermore, the FSA has suggested it could impose monetary penalties on individuals who have, without approval from the body, carried out controlled functions.

The FSA is an independent, non-governmental body that derives its powers under the Financial Services and Markets Act 2000.

Its board, which sets overall policy, is appointed by the Treasury.ADNFCR-2318-ID-19744414-ADNFCR