Growth without governance by investment firms poses heightened risk to investors, says the U.K.’s Financial Conduct Authority (FCA) in a report detailing the results of a review of fast-growing firms. With weaker governance arrangements, the FCA said firms “lacked sufficient independent challenge, with responsibilities concentrated among a small number of individuals.” Additionally, the FCA saw weaknesses arise where firms’ business models evolved, or target customers shifted, but their policies, procedures and control frameworks didn’t match those changes. “Firms with strong governance, risk management and oversight arrangements are often better equipped to manage the challenges associated with rapid growth,” it said. “This can improve the sustainability of growth and reduce the risk of consumer harm as the firm scales.”