MiFID II policy paper – FCA amends position on inducements and research – 4th July 2017

The Financial Conduct Authority (FCA) has amended its position on inducements in relation to research, it said in its Markets in Financial Instruments Directive policy statement II published yesterday. An investment firm should ensure the transfer of research charges into a research payment account, where using a third party to facilitate the deduction from its clients, is completed within 30 days from the transaction, it said in the policy statement. This will be included in its final guidance. This approach gives firms certainty on the FCA’s minimum expectations, the FCA said. Even with the 30-day limit, it expects firms in this situation to consider earlier movement of funds into the account where appropriate to ensure full control over the funds.

 

 

Alex Davidson, Regulatory Intelligence