FCA considers full ban of DFM rebates

clock •

The Financial Conduct Authority (FCA) is seeking feedback on a possible ban on rebates from discretionary fund managers to clients as it develops its response to forthcoming MiFID II legislation.

In a discussion paper published today, the FCA has called for feedback on a variety of issues raised by the European legislation, including proposals surrounding discretionaries' use of third party commissions. As it stands, MiFID II will ban DFMs from accepting and retaining third party commissions, similar to RDR adviser charging rules - but does allow DFMs to receive payments if these are passed on to clients in full. This "in effect allows rebating", the FCA said - but the regulator has raised the idea of banning the practice in the UK. "We want to seek views on whether consume...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Darius McDermott: Asia's broadening investment story

Darius McDermott: Asia's broadening investment story

Fund managers have a dilemma

Darius McDermott
clock 21 October 2026 • 5 min read
China's historic move away from coal shows why investors need to keep digging

China's historic move away from coal shows why investors need to keep digging

'A key challenge for investors is to identify the pockets of genuine innovation'

Xin-Yao Ng
clock 19 October 2026 • 4 min read
Investors yet to stuff ISA allowances as government plays down spectacle despite 'tough' Budget

Investors yet to stuff ISA allowances as government plays down spectacle despite 'tough' Budget

Platform activity stable

Jack Roach
clock 19 October 2026 • 4 min read