Wealth Manager - Essential news for investment professionals

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

FCA: managers must show client benefit of dealing commission

FCA: managers must show client benefit of dealing commission

UK investment managers must ensure that bank sell-side research implicitly provided in return for dealing commissions is directly related to client interest and costs, the regulator has said.

Saying the announcement would ‘reinforce the current rules and provide greater clarity’ the Financial Conduct Authority (FCA) denied it was making substantive changes to how it treats sell-side research and commissions, worth approximately £3 billion a year.

‘Investors should be confident that dealing commission is only used to buy execution or research services that deliver real value,’ said FCA chief executive Martin Wheatley (pictured).

‘These changes offer firms a real opportunity to show they put their clients first and strengthen the industry’s reputation for transparency.’

The FCA said managers would be expected to show ‘they are acting as good agents and taking proper account of investors’ interests,’ and that ‘clients are given easily understood information on the risks and costs of the service’.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Your Business: Cover Star Club

Veteran banker boosts Sanlam’s stockbroking team

Veteran banker boosts Sanlam’s stockbroking team

A veteran private banker has been recruited by Sanlam Private Investments to strengthen its advisory stockbroking team.

Wealth Manager on Twitter