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Alarm raised over fund payments for corporate access
Markets
by Daniel Grote on Mar 04, 2013 at 08:09
Investment banks are charging asset managers up to $20,000 (£13,000) an hour for access to the chief executives of their corporate clients, according to the Financial Times.
It said the practice was most prevalent among hedge funds, although mainstream asset managers are also making payments for similar access.
It pointed to figures from a recent survey showing European asset managers were devoting 29% of their dealing commissions for corporate access in 2012, despite a ruling from the Financial Services Authority that commissions should only be paid for execution or research.
Investment Management Association chief executive Daniel Godfrey (pictured) said: 'A rudimentary straw poll of corporate communications advisers and chief executives indicated that many of them weren't aware that investors and potential investors were paying to see them.'
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