In setting out its radical views on the use of dealing commission, FCA is posing a significant challenge to the investment industry, both buy and sell sides.

The answer to the obvious question about why FCA is going in so hard on this issue is that they are only too well aware of the likely impact of MiFID II. Whether we like it or not, the tune these days is called by the EU and its organs, including ESMA, are shaping the detail as we speak. If the UK is to influence that detail, it needs to speak with an authoritative voice from an evidence-based viewpoint. FCA’s DP is designed directly to generate that evidence to put it into a position from which it can challenge politically-driven proposals from EU entities.

For all those to whom use of commission is an important matter, engaging in this debate will also be an important matter. Those who speak out will always know that they gained what they could; the silent majority will not be heeded.

OWL provides support to firms engaging in the consultation process, assisting with analysis, drafting and communication.