Asset Managers will be scrutinised over use of commission under MiFID

Proposed MiFID inducement rules may significantly affect the way Asset Managers do business with clients and brokers, according to Asset Managers at the Clearconcepts Financial Services Discussion Club.

[ClickPress, Mon Feb 19 2007] Proposed MiFID inducement rules may significantly affect the way Asset Managers do business with clients and brokers, according to Asset Managers at the Clearconcepts Financial Services Discussion Club.

Under MiFID, firms will have to demonstrate that commission charges do not reflect any bias and facilitate an enhanced service for customers. This will particularly affect IFAs benefiting from trail commissions and distributors who are likely to have to monitor third parties much more closely.

Representatives from the UK's top Asset Management firms attended the club, which was chaired by Graham O'Connell, Director, Advisory Financial Services at PricewaterhouseCoopers LLP. The Financial Services Discussion Club for Asset Managers meets every month in London.

Graham O'Connell said, “Firms will also need to monitor the potential conflict between MiFID's Best Execution requirements and inducements outside of the scope of standard commission charges. Such inducements could influence firms to work with brokers even though they do not offer the best deal for their clients.”

Richard Walbach from Clearconcepts added, "These concerns highlight the need for industry cooperation and we expect further debate on these issues over the coming months.”

NOTES FOR EDITORS

• The forum was held at Tower 42 in London on 5th February 2007
• The Financial Services Discussion Club was set up by Clearconcepts in 2006 following demand for an independent discussion group. It aims to provide a forum for the discussion of topical issues and exchange of ideas and approaches. It also provides an opportunity for professionals to meet on a regular basis.
• The next meeting for asset managers will be held in London on 5th March.
• For more information or to register for the Financial Services Discussion Club, contact Laura Wilkinson - laura.wilkinson@clearconcepts.co.uk 020 7405 0065
• Clearconcepts is an independent marketing communications house, specialising in market research, events planning and public relations.

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