Meritsoft's James Cookson: The debate around the optionality rules for research payments

'A significant shift in the landscape'

Earlier this year, the Financial Conduct Authority’s launched a policy statement called PS24/9, introducing new rules on payment optionality for investment research that promise to offer greater flexibility and operational simplicity, particularly for smaller firms.

Following feedback from industry, the FCA has proposed to extend those freedoms to pooled investment funds, alternative investment funds and UCITS funds too, allowing fund managers to combine payments for research with trade execution. Both updates mark a significant shift in the landscape of research payments for investment firms, but will this actually boost efficiency and economic growth?   The most notable change going forward is the allowance for joint payments for third-party research, enabling firms to combine payments for research and execution. FCA urged to adopt reforms a...