FCA launches consultation into cash for corporate access

The Financial Conduct Authority (FCA) has launched a consultation on proposed changes to the rules governing the use of dealing commission by fund managers, in particular how they pay for access to company CEOs.

Dealing commission - the charges paid by consumers for executing trades and related services - have come under scrutiny recently after the regulator highlighted flaws in the regime. It has drawn particular attention to how commission is used to buy access to meetings with senior executives at PLCs. The FCA said last month it would be launching not only a thematic review, but also a consultation on how fund managers use client cash in this regard. Today, the FCA set out a number of areas it wants to investigate more closely, in order to make the system more "fair and transparent". T...