Wealth Manager - the site for professional investment managers

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

IMA hits out at European body over dealing commission conflict

IMA hits out at European body over dealing commission conflict

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.

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 Commodity conundrum, beleaguered bonds and a US dilemma

Commodity conundrum, beleaguered bonds and a US dilemma

This week’s episode of Investment Pulse looks at the impact of falling commodity prices on banks, dangers of negative yield curves and whether US equities can continue to deliver.

Play Mirabaud's Pyshkin: The US will continue to grow dividends

Mirabaud's Pyshkin: The US will continue to grow dividends

The global equity income manager has invested half of his fund here.

Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Wealth Manager on Twitter