FCA fines asset managers in first use of its competition powers

The FCA has announced its first decision under its competition enforcement powers, finding three asset management firms have breached competition law. The decision follows a statement of objections issued to Artemis Investment Management LLP (Artemis), Newton Investment Management Limited (Newton), Hargreave Hale Ltd, and River and Mercantile Asset Management LLP (RAMAM) in November 2017 alleging breaches of competition law.

Newton, RAMAM and Hargreave Hale were found by the FCA to have infringed competition law by sharing strategic information during an IPO and a placing as prices were being set. The FCA found these firms to have accepted or disclosed otherwise confidential bidding intentions in relation to prices and volumes they were willing to pay, allowing one firm to know another's plans when they should have been competing. However, the FCA found that there were no grounds for action in respect of conduct between Artemis and Newton that took place between April and May 2014 in relation to an IPO.

A non-confidential version of the FCA's decision under the Competition Act 1998 will be published in due course. An appeal of the decision can be made to the Competition Appeal Tribunal.

RAMAM was fined £108,600 and Hargreave Hale was fined £306,300. The FCA used the same criteria in calculating the fines and the different penalties reflect their respective turnovers in the UK. The FCA did not impose a fine on Newton as it was granted immunity under the FCA's competition leniency policy in return for reporting cartel activity and assisting the FCA with its investigation. It is hoped that the non-confidential decision, when published, will provide firms with some guidance on the implementation and practical effects of this policy.

Read the full briefing here.

Contacts