IMA chief executive Daniel Godfrey (pictured) has hit out at proposals from the European Securities and Markets Authority (Esma) to ban the use of dealing commission for investment research, which he said would place UK asset managers 'at a competitive disadvantage'.
Esma 's consultation on Mifid II has suggested substantial restrictions on dealing commission to pay for the research. This is in contrast to the IMA, which has campaigned for firms to be transparent over the costs of this research for clients, as laid out in its eight point plan.
'The IMA does not support Esma’s proposals. Research associated with the use of dealing commissions is not an inducement. Rather, it raises conflicts of interest, which need to be managed. Further, ESMA’s proposals would create a muddled regime with never-ending debate about what was allowed and what was not,' Godfrey said.
'In addition, unilateral change in Europe or the UK would create regulatory arbitrage that would put the UK investment management industry at a competitive disadvantage and the IMA could not support this.'
The Financial Conduct Authority has cracked down on fund managers charging clients for corporate access and revealed last month that only two of the firms it surveyed met its standard on dealing commission.