The Financial Conduct Authority has proposed extending rules on how asset managers pay for investment research to pooled investment funds.
In July, the regulator finalised rules allowing institutional investors greater flexibility in how they pay for investment research.
The rules allow the ‘bundling’ of payments for investment research, aimed at improving competition in the space and aligning rules with other markets.
See also: FCA plans to overhaul how asset managers pay for investment research
The FCA said that following industry feedback, it wants to extend the rules to alternative investment funds and UCITS funds. The FCA has asked for further industry feedback on widening the scope of the rules. It would allow firms to pay for research and trade execution in a single transaction.
Jon Relleen, director of supervision, policy and competition at the FCA, said: “We want UK markets to be efficient and to support economic growth. Putting more information in the hands of investors and giving investment firms greater access to research to inform their strategies will bolster UK markets.
“We want to seize opportunities to enhance and streamline our rules and support the competitiveness of sectors in which the UK is already a recognised world leader.”
Meanwhile, the FCA also announced plans to ensure investors have access to “better, quicker and clearer” bond and derivatives data at a fair price.
Under the new rules, compliance costs for trading venues and investment firms would be lowered by simplifying the regime, while investors would be allowed access to higher quality post-trade data, and greater transparency in the timeliness of information published to market.
