Clive Adamson, FCA director of supervision
The FCA has issued a warning to firms managing the transition of billions of pounds of assets invested in pensions after it imposed a £22m fine.
The FCA insisted it will take strong action against offenders, following its first review into the specialist transition management sector.
In January one such provider, State Street, was fined £22.9 million for deliberately overcharging clients.
The FCA looked at the 13 providers which oversee £165 billion of assets in large funds transferred between investment managers, markets and products every year.
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The authority has told these companies to check that their controls, oversight and governance arrangements meet its requirements.
Clive Adamson, FCA director of supervision, said: "Transition management often flies below the radar, but done properly, helps to ensure that investors get the best returns on their assets.
"By taking a proactive look across the sector, we've acted to ensure that standards are high and the consequences of failing to meet our expectations are clear."
He added while the review found that firms broadly met FCA requirements the quality and effectiveness of controls, marketing materials, governance and transparency varied.
