Rules taking force in 2019 require individuals in large accountancy firms and immediate family members to gain approvals for what they invest in to avoid conflicts of interest. That adds to risk management challenges for wealth managers running their money.

Quilter Cheviot has launched a new service to help employees of the Big Four accountancy firms – Deloitte, KPMG, EY and PwC – manage their investment portfolios under rules announced in 2019. 

The Financial Reporting Council Revised Ethical Standard 2019, taking effect in the UK, increased the need for individuals working in large accountancy firms and their immediate family members to gain approval for their investments to avoid conflicts of interest.

“For many years we have very successfully worked closely with partners and employees of the Big Four accountancy firms. However, revised rules around personal independence have made it critical that the foundations are strengthened and that accountants can trust our abilities to preserve their personal independence,” Nick Holmes, managing director, investment management, Quilter Cheviot, said.

The rule required wealth managers and clients of these accountancy firms to step up risk management.

Quilter Cheviot said it has worked with the accountancy businesses to understand and attain the appropriate levels of risk management and compliance. The new service is now live.

Where possible, the wealth manager has built automated data feeds so that accountancy firm staff can have their investment portfolios checked daily for any breaches of personal independence. 

Similarly, Quilter Cheviot has built pre-cleared investment portfolios for those members of staff and their immediate family members to adhere to personal independence rules.