This review will look at systems and controls used by firms to counter money laundering, sanction breaches and bribery and corruption.
Tracey McDermott, head of enforcement and financial crime at the FSA, said a review of the asset management sector, which has over £4trillion in assets, was overdue.
Speaking at the Association of Private Client Investment Managers and Stockbrokers conference yesterday, she said: "As well as building on the approach used in our previous reviews, we will also consider issues that are specific to the asset management industry. We have taken a sample of 22 firms from across the investment management sector, aiming to capture the industry's diversity.
"As with all our thematic reports, we will give examples of both good and poor practice that will give you and us picture of what is happening across the sector and help standards be raised."
Ms McDermott said she hoped the results would be an improvement on the "disappointing" review of the banking sector in 2011.
Problems highlighted were that banks showed weakness in identifying risky customers, failed to establish the source of wealth and funds and failed to carry out appropriate due diligence. They also failed to turn away business relationships where there was an unacceptable risk of handling the proceeds of crime.
Ms McDermott warned firms: "We published that review over a year ago and I hope you will have been able to digest its findings and apply its lessons to your own business."
She said the results of the review would be published in the third quarter of 2013.
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