Asset managers face scrutiny over fees for research

Investment companies may have to change the way they pay for research from banks, as the practice comes under the regulator's microscope.

According to a report by the FT, a study by the CFA Society revealed 60% of 350 investors surveyed believed the current model does not best serve investors. Companies should pay for research with their own money, the study found, as opposed to taking the payments from clients. Only 37% of respondents said investment companies should continue paying for research from the banks using the client's money in the form of commissions. However, 53% thought investment companies should pay for bank research using their own balance sheets, with two-thirds of respondents also suggesting investmen...