Change font size:   

 
Selling short

Selling short

Euromoney's coverage of past short selling regulations and questionable events is worth a look today

Securitisation is not dead

Securitisation is not dead

By Michael Heise, chief economist Allianz Group/Dresdner Bank

May 2003

FSA calls time on research sweeteners


UK brokers and fund managers are confronted bold new plans drawn up by regulator, the Financial Services Authority, to force them to separate trading and non-trading costs when they charge clients. Thomas Williams talks to Christina Sinclair, head of the FSA’s business standards department, about the proposals




Why have you decided to tackle soft commissioning and fee bundling now? It's important for customers to be clear how their money is spent. We believe that there are conflicts of interest under the current system. What evidence have you found that the arrangement whereby fund managers pay soft commissions and bundle together the fees they receive for research and execution is detrimental to investors? There is very little high-quality information about the dynamics of the UK marketplace, so before we launched any regulatory proposals we wanted to make sure that we understood the nature and scope of the conflicts and the underlying economics of the market. We asked Oxera [Oxford Economic Research Associates] to undertake research on our behalf, and we have published their findings with our consultation paper. Oxera's research showed that over £2.3 billion [$3.6 billion] was paid in commission by UK institutional fund managers to UK brokers in 2000. What we are asking is whether there is an incentive under existing soft commission...


This is archived content. Your current settings does not currently allow access to the archive. To gain access visit the subscription page or call our hotline on +44 (0)207 779 8999.


Subscribe

Subscribers to Euromoney benefit from:
    
Level 1:

  • Online access to the past 12 months content
  • Tailored RSS news feeds direct to your desktop
  • News delivered directly to your mobile device or PC
  • Personalised email newsfeed of 'Top stories' and 'Breaking news'

    Level 2:

  • Exclusive access to euromoney.com - Read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 2000
  • 12 monthly issues of Euromoney magazine
  • More than 30 specialist research guides free
  • The results of Euromoney’s polls and surveys
  • Tailored RSS news feeds direct to your desktop
  • News delivered directly to your mobile device or PC
  • Personalised email newsfeed of 'Top stories' and 'Breaking news'

Click here to subscribe




Ruromoney Jobs Post a job