Will bond funds be helped or hindered by MiFID II clampdown?

clock

The Financial Conduct Authority (FCA) has said European dealing commission reforms will benefit fixed income funds, but market participants remain uncertain of the impact of the changes.

Yesterday the FCA gave its backing to MiFID II proposals preventing fund groups from using dealing commission to pay for research, following on from its own discussion paper in July 2014. The scope of those reforms has so far focused on equity funds - the FCA said last July it "had not explored" the impact on fixed income funds. Yesterday's paper, however, saw the regulator address the subject for the first time. The FCA said the reforms will "bring transparency in an area that is currently more opaque than equity markets since research is entirely embedded in implicit transaction cos...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Wealth managers

The regulator noted there was broad agreement across the industry regarding the potential harms caused by the growing role of ESG data and rating providers.

FCA sees 'clear rationale' for regulatory oversight of ESG data providers

Mixed feedback on UK green bond standard

James Baxter-Derrington
clock 29 June 2022 • 1 min read
The ETFs aim to overcome traditional yield shortfall by using multi-factor investing.

Invesco launches two ESG credit ETFs

Invesco has launched two new ESG ETFs that provide investors with access to investment grade fixed-rate euro-denominated unsecured corporate bonds from global issuers.

clock 29 June 2022 • 2 min read
Industry Voice: Green bonds - a powerful way to take climate action

Industry Voice: Green bonds - a powerful way to take climate action

Did you know that investing in green bonds is one of the most powerful ways to make a climate-positive impact ? Learn why green bond proceeds are putting the planet first.

Amundi ETF
clock 23 June 2022 • 8 min read
Trustpilot