The FCA has published a feedback statement on the use of dealing commission (FS15/1). The FCA says it strongly supports ESMA’s final advice position to the European Commission, which treats research received by portfolio managers from brokers as an “inducement” that portfolio managers would not be permitted to receive under MiFID II, subject to a new “safe harbour” under which a portfolio manager could either pay for the research out of its own resources or using a “research payment account” paid for by clients, subject to conditions. Final rules will need to be drafted and adopted by the European Commission as part of MiFID II, which is scheduled to come into force on 3 January 2017. In its feedback statement, the FCA said that it prefers to implement any further changes to its dealing commission rules in line with final MiFID II position. The FCA also expects to publish a consultation on its implementation of MiFID II later this year.

Read "Feedback statement on DP14/3 – Discussion on the use of dealing commission regime"