MiFID II draft bans platform payments to DFMs

Article 4a of the draft rules, leaked last month, bans portfolio managers from accepting any fees from third parties on clients' behalf. It states: "When providing portfolio management, the investment firm shall not accept or receive fees, commissions or any monetary benefits paid or provided by any third party or a person acting on behalf of a third party in relation to the provision of the service to clients." If enacted, the ban would affect platforms that have set up client cash accounts to make payments direct to DFMs, which includes Ascentric, Transact, Nucleus, Novia, Standard ...