TM fines expose ‘best execution’ issues
Recent lawsuits involving transition managers in the UK and US are seen as likely to have a knock-on effect globally, including in Asia Pacific.
Institutions in Asia should take note of recent fines imposed on ConvergEx and State Street for charging unwarranted price mark-ups and hidden spreads, argue market participants.
The UK’s Financial Conduct Authority (FCA) last month followed these penalties with a review of TM providers that is likely to be referenced by other regulators, including in Asia, says Graham Dixon, director at London-based consulting firm Inalytics.
The FCA found that 13 managers transitioned £165 bil…
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