Pooled investment funds could soon come under scope of new rules about how firms pay for investment research.
The Financial Conduct Authority has set out changes to improve transparency in the bonds and derivatives market.
The proposals would also give asset managers for pooled investment funds greater flexibility, making it easier to buy insight and analysis across borders.
It comes after the FCA finalised rules allowing institutional investors more flexibility in paying for investment research.
It said feedback from this has led to its planned expansion to pooled investment funds.
Jon Relleen, director of supervision, policy and competition at the FCA, said: “We want UK markets to be efficient and to support economic growth. Putting more information in the hands of investors and giving investment firms greater access to research to inform their strategies will bolster UK markets.”
The FCA said access to clearer data at a fair price would:
- Create greater transparency, in terms of timeliness and content of the information published to the market.
- Result in lower compliance costs for trading venues and investment firms by simplifying the regime.
- Mean higher quality post-trade data, supporting the creation of a consolidated tape for bonds in the UK.
Relleen added: “We want to seize opportunities to enhance and streamline our rules and support the competitiveness of sectors in which the UK is already a recognised world leader.”
The new transparency regime is set to come into force on December 1, 2025.
tara.o'connor@ft.com
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