FCA readies fund charges overhaul as asset managers 'stretch rules'

The chief executive of the Financial Conduct Authority is set to criticise asset management firms for the way they pass on the cost of third party research to clients.

In a speech today, Martin Wheatley (pictured) will say fund managers are "stretching the definition" of rules on what can be charged to clients, costing customers an extra £3bn a year. The FCA is to begin consulting next month on how to reform such regulations, according to the Financial Times. The regulator's research has found up to £500m worth of dealing commission may have been used to access the head of corporations last year. "The way the model is currently working is, because it is bundled, you are effectively spending your client's money when you buy access or research," Wh...