Dealing commission flaws may not end with FCA crackdown

LEADER

The FCA caused something of a stir at the end of 2013 when, as part of its attempt to scrutinise charges at all parts of the investment chain, it took fund managers to task over dealing commission.

The regulator’s crackdown was not exactly a good example of its effort to be more pre-emptive: the consultation was launched in response to reports some groups were paying brokers five figures sums for meetings with company management. Charging those access fees to clients – the FCA estimates up to £500m in dealing commission was spent arranging such meetings last year – was effectively banned in the initial consultation. But plenty of other issues remain over charging clients for the cost of accessing research. The consultation, for example, seeks to end attempts to blur the line ...