We have finalised rules allowing pooled investment funds greater freedom in paying for investment research.
These new rules help UK markets to be more efficient to support growth. High-quality, easily accessible investment research is crucial for fund managers to make informed investment decisions for the benefit of investors.
As a pro-growth regulator, we aim to improve competition in the market, especially for smaller fund managers, and make it easier for firms to buy research across borders where bundled payments are standard practice.
Following industry feedback, we extended the option for institutional investors to combine payments for research and trading services to pooled funds.
Background
In July 2024, we finalised rules[3] allowing institutional investors more flexibility in paying for investment research.
Following feedback from industry, we extended those freedoms to pooled investment funds, including undertakings for collective investment in transferable securities (UCITS).