The Financial Conduct Authority (FCA) has put forward improvements to the rules on how investment managers use client commissions. The changes will make sure that charges paid by consumers for the executing of trades and other related services, known as dealing commission, are "fairer and more transparent".
The proposals are designed to ensure investment managers make "appropriate judgements" and "seek to control costs to clients" when they're using dealing commission to pay for research goods and services. The FCA intend to clarify the criteria for purchases made with dealing commission paid from customers' funds, along with providing guidance on mixed-use assessments and "defining 'corporate access'" for managers.
Martin Wheatley, the FCA's chief executive officer, said that the regulator needs to be "confident that managers are putting their clients’ value for money, good returns, and transparency at the heart of how they do business".