UK Fund Managers warned to stay off the golf course

Fund managers have been warned to stay off the golf course by the UK regulator as they are spending too much money wooing clients

According to a report in the Financial Times, The Financial Conduct Authority has said review of conflicts of interest in asset management that industry bosses were spending too much money wooing clients. They were also still offering social events that were not directly relevant to business — such as invites to attend rugby games or play golf.

“Hospitality provided or received did not always appear to be designed to enhance the quality of service to the client,” it said. “These benefits did not appear capable of enhancing the quality of service to clients as they were either not conducive to business discussions or the discussions could better take place without these activities.”

Fund managers have fought back by saying that offering clients hospitality was a key part of winning and maintaining business.

“I am saddened by the idea that we can no longer be hospitable to clients,” said Justin Urquhart Stewart, chief executive of Seven Investment Management. “Soon we will be having a golf day without golf balls, a fishing day in the gym and we will be watching Formula One racing on the office television.”

It looks like the times of the big jollies may well be coming to a close if the regulators have their way. Maybe they’ll still be able to slot in a quick nine holes and a pint of gunners without upsetting anybody.

For more on the new nine-hole tournament on the eve of The Open Championship click here or on the image below.