At present, brokers supply research to investment firms for no upfront cost, and instead expect to be rewarded with orders to execute market trades.
      
    
    
      
	Britain's financial regulator will not make changes to planned European Union rules for dealing with payments by fund managers for investment research from brokers.
	The EU's European Securities and Markets Authority (ESMA) has, however, proposed that research be paid for directly by investment firms or from a ring-fenced account funded by a specific charge on customers.
	The industry was unsure whether the FCA  would apply the EU rules or opt for a tougher version.
	On Thursday, the FCA  clarified its stance, saying the planned EU rules, which take effect in January 2017, will "achieve similar benefits" to its own proposals.
	"Our preference remains to implement any further changes to our domestic inducements and use of dealing commission rules in line with the final (EU) reforms," the FCA  said.
	Full article on Reuters
      
      
      
      
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