With the introduction of the Markets in Financial Instruments Directive II (MiFID II) now just over nine months away, the Financial Conduct Authority's (FCA) identification of failings in the way asset managers are using clients' money through dealing commission arrangements is particularly concerning.
According to the regulator, the majority of the 17 firms assessed for their response to a previous paper on the use of dealing commissions failed to assess whether research received is substantive, attribute a price or cost to substantive research, or demonstrate they are not spending more of their customers' money than necessary. Aside from the fact many of the FCA's rules governing the use of customers' money to pay for research have been in place for over a decade, the findings are particularly striking given the fact MiFID II is to be introduced on 3 January next year. On top of e...
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