Fiduciary duties of UK investment managers and conflicts: the arch financial products case

Abstract

Purpose

The article analyses the findings of the Court in the Arch Cru case relating to manager fiduciary duties under English law and conflicts of interest compliance failings.

Design/methodology/approach

This article summarises the Arch Cru case with a focus on fiduciary duties and practical compliance suggestions for conflicts of interest situations.

Findings

The article addresses in particular the novelty of the fiduciary duty finding in the Arch Cru case and the justifiable concerns that compliance officers may have going forward given the nature of the regulatory enforcement approach taken by the FCA.

Practical implications

The article highlights the nature of the fiduciary obligations owed by managers under English law together with a brief analysis of the causes of action for breach of fiduciary duty and the linkage to regulatory compliance obligations.

Originality/value

The article is of value to investment managers, their compliance officers and general counsel where the manager provides investment management services under English law because it provides insight into the nature of investment manager fiduciary duties under English law and the impact of breaching those duties in a conflicts of interest scenario.

Citation

Penhall, W. (2015), "Fiduciary duties of UK investment managers and conflicts: the arch financial products case", Journal of Investment Compliance, Vol. 16 No. 3, pp. 43-48. https://doi.org/10.1108/JOIC-06-2015-0037