European regulator 'to scrap dealing commission proposals'

European regulators are to pull back from proposals which seek to end fund managers' use of dealing commissions to pay for research, according to reports.

The European Securities and Markets Authority (ESMA) has been consulting on proposals, backed by the UK's Financial Conduct Authority (FCA), to fully unbundle research from dealing commission costs as part of MiFID II. Analysts' assessment of the possible impact of the rules, which would come in at the start of 2017, have ranged from limited to "worse than RDR" for fund groups. Schroders chief executive Michael Dobson sought to downplay the impact last week, saying proposals were at an early stage and emphasising the impact on his business would not be material. Now MEP Kay Swinbur...