Two-thirds of wealth managers in the City of London are failing to make sure the portfolios they manage for clients are suitable, according to the UK's market regulator, which has uncovered "concerning" evidence of neglected client files and misallocated assets.

In a thematic review that follows up on previous examinations of the £600 billion industry, published December 9, the UK Financial Conduct Authority said that a third of firms fell "substantially short" of its expectations.