FCA in talks on client redress after dealing commission review

The Financial Conduct Authority (FCA) is in "active discussions" with one asset manager on client redress after a review of fund managers' use of dealing commissions found widespread failings.

A review of how firms use dealing commission - charges paid by consumers for research and the execution of trades - found too few firms correctly assess the benefits, and cost of, such research. The regulator said its review, which encompassed 17 investment managers and 13 brokers, found "only two investment managers operating at the level we expect". "We are in active discussion with one firm on redress for clients after we found it used dealing commission to pay for market data services in full, despite clear statements that this was not consistent with our rules," it said. That ...