On 10 February 2014, the FCA published a report and related press release outlining the findings of its thematic review into transition management ("TM") services in the UK.
The report examines the scale of TM in the UK, the complexity of the TM process and transparency and accountability of TM service providers. Transition management ("TM") is provided by investment banks, custody banks, asset managers and specialist firms to help move investment portfolios between different managers or markets.
The FCA's report concluded that generally TM providers demonstrated the existence of appropriate controls and an understanding of the risks. However it concluded that the quality and effectiveness of the controls varied. The FCA stated that it will continue to monitor the conduct of TM providers where firms fall short of its requirements.
The FCA's report is available at: http://www.fca.org.uk/static/documents/thematic-reviews/tr14-01.pdf
The FCA's press release is available at: http://www.fca.org.uk/news/transition-management-findings
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