In this Policy Statement we report on the main issues arising from Consultation Paper 13/17 – Consultation on the use of dealing commission rules, and publish the final rules.
Why are we publishing this policy statement?
This Policy Statement summarises feedback from CP13/17 on proposed changes to our use of dealing commission rules and publishes our final changes to COBS 11.6 (Appendix 1). We have made small amendments to the final rules and guidance, and we also provide some clarifications in this Policy Statement as to the intention of our changes. However, we have decided to proceed with the main elements of the original proposals.
We believe the final changes will help ensure investment managers control the costs from the use of dealing commission appropriately in the best interests of their customers, and that goods and services acquired in return for dealing commission meet our rules.
Who should read this paper?
You should read this Policy Statement if you are:
- an investment manager
- a customer of an investment manager
It will also be of interest to relevant trade associations, brokers (including investment banks), and providers of services such as market data services and independent research.
What are the next steps?
Investment managers should review the finalised changes to our Handbook set out in Appendix 1. These changes will take effect on 2 June 2014.
We believe firms that are already complying with our rules will not need to make significant changes. However, firms may wish to reflect changes to the wording of our existing rules and new guidance in their internal policies and procedures.
Need more information?
For more information see:
- CP13/17 – Consultation on the use of dealing commission rules[3]
- Keynote speech by Martin Wheatley, Chief Executive of the FCA, at the FCA Asset Management Conference, London[4] (October 2013)
- FSA Report, Conflicts of interest between asset managers and their customers: Identifying and mitigating the risks[5] (November 2012)
- the FCA Handbook[6]