FSA best execution proposals are 'contradictory'

Ash Saluja, partner at CMS Cameron McKenna, says an opinion paper from a legal department at the FSA, which discusses the areas where best execution requirements are likely to apply once NEWCOB has come into force, is contradictory to the regulator’s consultation paper. In its discussion paper on best execution in May, the FSA suggested dealing firms would have a duty of best execution where they are executing client orders on their own account. But in its recent consultation paper, Saluja says the FSA has done a u-turn by trying to enable dealers to escape the best execution obligation ...