FCA makes its first enforcement decision under competition law

  • United States
  • 02/26/2019
  • Linklaters

Following receipt of its concurrent competition law powers in 2015, on 21 February 2019, the FCA issued its first ever competition law enforcement decision (see FCA press release here). This follows a three-year investigation by the FCA into conduct by asset managers in relation to UK primary market events.

The FCA fined Hargreave Hale Ltd (“Hargreave”) £306,300 and River & Mercantile Asset Management LLP (“RAMAM”) £108,600. According to the FCA, the firms breached the competition rules by sharing strategic information about price and volume during one initial public offering (IPO) and one placing shortly before the share prices were set. A third firm – Newton Investment Management Limited (“Newton”) a Bank of New York Mellon subsidiary – was given immunity under the competition leniency programme and therefore was not fined. However, the FCA recently fined former Newton fund manager Paul Stephany £32,000 for FSMA breaches in relation to some of the same facts. The FCA stated that it had investigated, but found there were no grounds for action in respect of, conduct between Artemis Investment Management (“Artemis”) and Newton that took place between April and May 2014 relating to an IPO (continue)

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