LONDON, March 3 Asset managers could face
enforcement action for failing to give customers value for money
from "dealing commission" charges for company research and
executing share orders, Britain's Financial Conduct Authority
said on Friday.
In a stinging rebuke of the sector, it said most of the 17
asset managers it visited were falling short of what the
watchdog has recommended as best practice for handling dealing
commission, worth 3 billion pounds a year
"More work needs to be done by investment management firms
to ensure they spend their customers’ money with as much care
and attention as if it were their own," the FCA said.
Several firms could not demonstrate meaningful improvements
in terms of how they spend their customers' money through their
dealing commission arrangements, the FCA said.
"Where we identify breaches of our rules, we will consider
further action, including referring firms for further
investigation," it added.
(Reporting by Carolyn Cohn, Huw Jones and Maiya Keidan)