In response to a series of thematic reviews of asset managers conducted between June 2011 and February 2012, the U.K.’s Financial Services Authority (FSA) has expressed concern over how asset managers are identifying, evaluating and managing conflicts of interest.  In a November 2012 report, the FSA highlighted specific conflicts of concern, including personal trading by employees and other conflicts.  The FSA indicated in the report that it expects asset managers to take immediate action to evaluate their conflicts of interest policies and procedures to ensure compliance with FSA principles and rules.  The report also requires specific action by the CEOs of certain asset managers by February 28, 2013.  This article summarizes key takeaways from the report for U.K.-based hedge fund managers and non-U.K. managers with offices, operations or investments in the U.K.