Dp14-03

Financial Conduct Authority

Discussion Paper

DP14/3

Discussion on the use of dealing

commission regime:

Feedback on our thematic

supervisory review and policy

debate on the market for research

July 2014

Discussion on the use of dealing commission regime

DP14/3

Contents

Abbreviations used in this document

1

Overview 5

2

Background to our review and

potential EU reforms

13

3

Supervisory findings

21

4

Policy debate

29

5

Options for change and a cost

benefit and competition analysis

42

6

Next steps

55

3

Annex

1

List of questions

Financial Conduct Authority

56

July 2014

1

DP14/3

Discussion on the use of dealing commission regime

We are asking for comments on this Discussion Paper by 10 October 2014.

You can send them to us using the form on our website at:

www.fca.org.uk/your-fca/documents/discussion-papers/dp14-03-response-form

Or in writing to:

Wholesale Conduct Policy Team

Markets Division

Financial Conduct Authority

25 The North Colonnade

Canary Wharf

London E14 5HS

Email: dp14-03@fca.org.uk

We make all responses to formal consultation available for public inspection unless the respondent

requests otherwise. We will not regard a standard confidentiality statement in an email message as a

request for non-disclosure.

Despite this, we may be asked to disclose a confidential response under the Freedom of Information

Act 2000. We may consult you if we receive such a request. Any decision we make not to disclose the

response is reviewable by the Information Commissioner and the Information Rights Tribunal.

You can download this Consultation Paper from our website: www.fca.org.uk.

2

July 2014

Financial Conduct Authority

Discussion on the use of dealing commission regime

DP14/3

Abbreviations used in this paper

AFME

Association for Financial Markets in Europe

AIFMD

Alternative Investment Fund...