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IMA responds to FCA research fee crackdown with eight-point plan
by Eleanor Lawrie on Feb 18, 2014 at 13:54
The Investment Management Association (IMA) has urged investment managers to only pass on research fees that are in clients' interests, as part of a review on dealing commissions.
In 36-page document in reaction to a crackdown by the FCA on companies using dealing commission to pay for corporate access, the trade body highlighted eight key areas, split between clients and market, which need addressing.
* The regime should operate in the best interests of investment managers' clients
* Investment managers should behave demonstrably as guardians of clients' best interest within that regime
* Any cost borne by a client should reflect an investment manager's honest, fair and professional assessment
* Investment managers should disclose to their clients in a timely and meaningful fashion any cost or fees relating to the consumption of research
* The research market should operate efficiently and transparently
* The market structure should ensure a wide range of investment managers have access to a broad spectrum of competing research providers and service offerings and does not raise barriers to entry
* Research providers should not discriminate in their supply according to other services
* The UK's regime for paying for research should not undermine the UK's international competitiveness.
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