The FCA And Unbundling

An edited conversation between David Lawton, Director of Markets, FCA and Edward  Mangles, Regional Director, Asia Pacfic, FIX Trading Community

The FSA introduced a new regime for what dealing commissions could be used for in addition to execution back in 2006. We have reviewed it a couple of times since then and are presenting a further round of review this year with.

There are three elements to this;

• The first is that in response to industry questioning, we have clarified in our guidance precisely what research can be bought using commissions.
• The second is that we have done a thematic review of how both buy-side and sell-side firms are complying with our rules and we’re presenting that back to the industry.
• Thirdly, given that in Europe we are in the context of introducing some new legislation , the FCA are keen to put forward some thoughts on what the more ideal longer term arrangements for dealing commissions in the market for research might look like.