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.

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 Taxicab Tenner: AXA IM's Nicolas Trindade

Taxicab Tenner: AXA IM's Nicolas Trindade

After a summer break, it is the turn of AXA Investment Manager's Nicolas Trindade to give a £10 view of how fixed income is faring.

Play Wealth Manager Olympics: the Relay

Wealth Manager Olympics: the Relay

In the final round of the Wealth Manager Olympics, our intrepid athletes team up for the relay.

Play Wealth Manager Olympics: the Shot Put

Wealth Manager Olympics: the Shot Put

After busting a gut in the 100m sprint, our wealth manager Olympians displayed their brute strength in the shot-put.

Read More
Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter