Investors in the derivative and bond markets are set for some good news. The Financial Conduct Authority (FCA) has laid out plans to make information more accessible and investment research payments cheaper and more flexible.
The FCA’s proposals are scheduled to take effect after December 1, 2025. They are aimed at solidifying the UK’s prime position in the derivative, bond and asset management sectors, in which it is a recognised world leader, strengthening the wholesale market and increasing competitiveness and growth.
The new rules will make it easier for asset managers to acquire cross-border insight and analysis, and for investors to be better informed when making decisions. They permit the ‘bundling’ of payments for investment research, to align with other markets.
It is hoped they will lead to greater transparency, lower compliance costs and better quality data. The FCA confirmed that in response to industry feedback, it is seeking to extend the rules to UCITS funds and alternative investment funds, in order to enable firms to pay for research and trade execution in one single transaction.
For his part, the FCA’s Jon Relleen, who is the director of policy, supervision and competition, said that the regulator was treating the measures as an opportunity to enhance and streamline existing rules that would bolster UK markets, making them more efficient as drivers of economic growth.
For further information on asset management in Cheshire, get in touch with Hartey Wealth Management today to find out how the new regulatory framework might affect you.
