As mentioned in a previous post, new rules on how dealing commissions can be used by investment managers to pay for research and other services were proposed by the FCA in November of 2013. The UK regulator gave the industry 3 months to respond, and as one might have expected, many market participants have made their voices heard.
Reports and recommendations have been released in recent weeks by the CFA UK, the IMA (Investment Management Association) and the ABI (Association of British Insurers), among others.
Most express an acknowledgement of the need to reform the system, but caution about potential damages to the industry if change is too radical. In general, the industry groups are not in favour of the outright banning of the use of commissions to pay for research.
Here you can find links to the responses by the CFA UK and the IMA as well an interesting article written by eFinancialNews that outlines many of the issues around this topic, including the problems that could arise if there is no international coordination on regulation.
We are likely to hear more about this in the coming weeks and months.
The Industry Responds to Proposed Regulations
Posted on the 8th April 2014 by Gillian Elcock
As mentioned in a previous post, new rules on how dealing commissions can be used by investment managers to pay for research and other services were proposed by the FCA in November of 2013. The UK regulator gave the industry 3 months to respond, and as one might have expected, many market participants have made their voices heard.
Reports and recommendations have been released in recent weeks by the CFA UK, the IMA (Investment Management Association) and the ABI (Association of British Insurers), among others.
Most express an acknowledgement of the need to reform the system, but caution about potential damages to the industry if change is too radical. In general, the industry groups are not in favour of the outright banning of the use of commissions to pay for research.
Here you can find links to the responses by the CFA UK and the IMA as well an interesting article written by eFinancialNews that outlines many of the issues around this topic, including the problems that could arise if there is no international coordination on regulation.
We are likely to hear more about this in the coming weeks and months.