LONDON, March 3 (Reuters) - 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