IMA open to 'radical change' as it addresses dealing commission conflicts

The report, published in response to an FCA crackdown on dealing commission, sets out eight measures of "a good regime for research payments" and acknowledges there are conflicts "inherent" in the existing business model. The IMA said it is open to "radical change" in rules governing the practice, which sees fund groups pay commission to brokers for research - and allows them to pass on these costs on to their customers. But it also flagged several issues, saying that the creation of a "pure cash market" to pay for research risked raising the barriers of entry for start-up investment ...