Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

FCA steps up crackdown on dealing commission

FCA steps up crackdown on dealing commission

The Financial Conduct Authority (FCA) has set out plans to crack down on fund managers’ use of dealing commission, proposing on a ban on the payments being used to buy corporate access.

The regulator as launched a consultation on dealing commission having identified shortcomings and inherent flaws in the current system.

The FCA said the consultation aimed to make the use of charges paid by consumers for executing trades and related services fairer and more transparent.

It has proposed a ban on using dealing commission to pay for corporate access and stricter rules on which type of research the commission can be used to pay for.

It said fund managers could still pay for corporate access, but that this should not be paid for out of dealing commission.

The regulator said it would engage with investors and asset managers for a three-month consultation period, and expected to finalise the new rules in the second quarter of next year.

FCA chief executive Martin Wheatley (pictured) said: ‘We need to be confident that managers are putting their clients’ value for money, good returns, and transparency at the heart of how they do business. So today’s consultation is part of a wider debate on the need to reform the use of the dealing regime, particularly the use of dealing commissions, and how industry practice can be improved now to the benefit of all.’

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 Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter