March 4 (Reuters) - Britain’s Financial Services Authority is set to go after asset managers using investors’ money to pay for access to chief executives, the Financial Times reported on Monday.
The FSA’s head of asset management, Ed Harley, raised the possibility that asset managers found to be in breach of its rules would have to pay multimillion-pound fines, the Financial Times said on its website.
Harley said an analysis by the FSA of the use of client commissions by 15 asset managers revealed large payments that were hard to justify, with the bulk of them going towards corporate access, the financial daily said.
Harley said the rules were clear that client commissions could only be used for trade execution and research, the FT reported.
Harley’s comments follow a Financial Times report on Sunday that said investment banks are charging asset managers up to $20,000 an hour to meet the CEOs of their corporate clients.
An FSA spokesman said he could not immediately add to Harley’s comments to the FT.