Investment Management Update: FCA expectations for investment managers on dealing commission; and more

The Financial Conduct Authority (FCA) has published Policy Statement PS 14/7 on changes to the rules on the use of dealing commission. The PS comprises feedback on Consultation Paper 13/17 and final rules that together aim to ensure that:

  • investment management firms only use client dealing commission to pay for substantive research or costs related to executing trades;
  • the rules provide greater clarity on what investment managers can pay for using client dealing commission;
  • firms act as good agents and take proper account of investors’ interests;
  • firms spend their clients’ money as though it was their own, seeking to manage costs with as much tenacity as they pursue returns; and
  • clients are given easily understood information on the risks and costs of the service and the investment decisions reflect their stated objectives…

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