This change has been done to create a fairer market for smaller asset managers who can sometimes struggle with operational complexities. Additionally, the current rules also restrict UK asset managers’ ability to buy investment research produced outside the UK.
As a result, the FCA engaged with both sides of the investment cycle to formulate fair proposals. As well as understanding both the sell-side and buy-side views, the FCA spoke to research providers and representatives of end investors. Consequently, it created a detailed survey of buy-side firms to collect quantitative evidence to shape its changes.
