Golf has become a dirty word in the UK asset management market.
The Financial Times reports that since the Financial Conduct Authority announced two weeks ago that investment managers were spending too much time wooing clients with lavish corporate jollies, the market has gotten itself into something of a flap.
This is not the first time the regulator has ruled against fund managers. It first clamped down on offering corporate perks to clients in 2012, which it followed with more explicit guidance in 2014.
But the latest note is more detailed — warning bosses to stay off the golf course specifically — and those in the industry fear it signals the start of a serious crackdown.
A senior executive at one large asset manager says alarm bells have begun to ring at some companies as a result.
What we have seen in the past two weeks is that some companies have issued a blanket ban on sporting events,” he says. “They do not want to risk getting on the wrong side of the regulator here.”
Hit the link below to access the complete Financial Times article: