The Financial Conduct Authority’s (FCA) consultation paper on unbundling is due to be published on Friday 22 November, according to sources close to the UK regulator.
At the end of October, FCA CEO Martin Wheatley outlined the regulator’s desire to improve competition in the research market and make asset managers choose research providers more carefully.
He also announced that the FCA would launch a consultation paper in late November, with a thematic review of commission unbundling and payments for corporate access due to follow.
The consultation paper is expected to outline the FCA’s intentions to improve transparency and competition in the research market. Possible moves could include forcing asset managers to use their management fees to pay for research and for sell-side firms to put explicit pricing on their research.
It is also expected to take steps to end the practice of paying brokers to access management teams in companies that buy-siders are considering investing in.
Wheatley also hinted at including some of the FCA’s proposals on regulation in its MiFID implementation to ensure that the research market across Europe is operated in line with its principles.