Sun. Sep 27th, 2020

European Central Bank warns of growing risks to global financial stability – business live

Rolling coverage of markets, economics and business news amid warning of increased risks posed by non-bank lenders

1.55pm GMT

Investment manager Janus Henderson has been fined £1.9m by the City regulator for not telling customers that their money was tracking investment indices, rather than being actively allocated by human managers.

The Financial Conduct Authority said Janus Henderson had failed to treat fairly more than 4,500 retail investors in two of its funds, the Henderson Japan Enhanced Equity Fund and the Henderson North American Enhanced Equity Fund, by reducing the level of active management without telling customers.

The FCA requires firms to treat all its customers fairly, not just some customers. In this case, retail investors paid fees for active investment management they did not receive.

For retail clients, the Japan and North American Funds were in effect operating as “closet trackers” as the fees charged to them were inappropriate given the diminished level of active management. The matter is aggravated by the length of time HIFL took to identify the harm being caused to the retail investors and to fix it.

1.46pm GMT

More detail on the “female advisory board” that Aston Martin set up in 2015.

Related: Aston Martin unveils £158,000 SUV aimed at wealthy women

Continue reading…Rolling coverage of markets, economics and business news amid warning of increased risks posed by non-bank lendersMore detail: Risks to global financial stability have increasedTwitter enters general election fray with rebuke to Conservatives Stock markets: Trump threatens tariff rise in China trade dispute Prosus hits back after Takeaway.com and Just Eat try to go forward with mergerAlibaba raises up to £10bn in Hong Kong share offering 1.55pm GMTInvestment manager Janus Henderson has been fined £1.9m by the City regulator for not telling customers that their money was tracking investment indices, rather than being actively allocated by human managers.The Financial Conduct Authority said Janus Henderson had failed to treat fairly more than 4,500 retail investors in two of its funds, the Henderson Japan Enhanced Equity Fund and the Henderson North American Enhanced Equity Fund, by reducing the level of active management without telling customers.The FCA requires firms to treat all its customers fairly, not just some customers. In this case, retail investors paid fees for active investment management they did not receive.For retail clients, the Japan and North American Funds were in effect operating as “closet trackers” as the fees charged to them were inappropriate given the diminished level of active management. The matter is aggravated by the length of time HIFL took to identify the harm being caused to the retail investors and to fix it. 1.46pm GMTMore detail on the “female advisory board” that Aston Martin set up in 2015. Related: Aston Martin unveils £158,000 SUV aimed at wealthy women Continue reading…