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“ The new framework needs to be assessed in its entirety.”
GIULIA PECCE, HEAD OF SECONDARY CAPITAL MARKETS AND WHOLESALE
INVESTOR PROTECTION POLICY AT AFME
The same survey found‘ relaxation of the rules around strategy level budgets’ was the most important change, followed by‘ removing the requirement for buy-side firms to have separate written agreements with providers’.
Notably, a number of senior executives on the buy-side were reportedly not so keen to open up the fees discussion due to the current market situation representing such a challenging landscape for asset gathering and retention. The change being reintroduced six years later is of course no small mission.
“ Joint payments should actually be a net positive for dealing desks if they embrace it.”
ANDREW QUICK, GLOBAL HEAD OF EXECUTION SERVICES AT REDBURN ATLANTIC
Robert Buller, global account management at Kepler Cheuvreux, tells The TRADE that“ Kepler Cheuvreux is well positioned to benefit from joint payments,” but adds that“ most UK long-only managers are hesitant to be first movers. Serious implementation is more likely by 2027, given the operational and regulatory steps required.”
Likewise, the fund management side appears to be taking a similar view, as Joe Abdallah, global head of account management at Kepler, explains:“ UK hedge funds prefer the stability of their current RPA setup, and on the Continent, client interest in joint payments remains limited, even with regulation expected by mid- 2026.”
After ten years, the unbundling to rebundling journey has seemingly reached its conclusion, and while the introduction of new initiatives from the UK government are widely regarded as the right step towards bolstering capital markets in the region, there is definitely work to do.
The industry is now facing the challenge of reassessing their processes and finding the right path to efficiency when it comes to their broker relationships- there ' s a prime opportunity here, but it remains to be seen just which firms are ready and willing to embrace it... stay tuned.
Issue 84 // thetradenews. com // 33