Following a three-and-a-half-year long investigation, the Financial Conduct Authority has issued its first decision under competition law against three asset management companies for IPO price collusion.
In a landmark decision at the end of February 2019, the Financial Conduct Authority (FCA) found that three asset management companies – Hargreave Hale, Newton Investment Management and River & Mercantile Asset Management (RAMAM)– had breached competition law, which is the first case the agency has issued using its competition law powers, which it has had for four years.
COMPETITION AND THE FCA
While the FCA is concentrating on its role in the United Kingdom’s impending exit from the European Union, the case provides valuable insight into its competition mandate going forward, with Nicole Kar, competition partner at Linklaters, saying in a statement that the case “clearly demonstrates that the FCA is not afraid to use its competition powers as part of its arsenal”.
