Thomson Reuters: UK FCA to investigate MiFID II inducements

In response to the announcement by the FCA it plans to launch an investigation into MiFID II, Third Bridge co-founder Joshua Maxey issued commentary on what needs further scrutiny.

“The buy-side community is now looking at how much it is spending in aggregate per sell-side firm. Let us say that a buy side firm reduces the number of sell side firms with which it does business from ten to five. The risk is that the buy side can no longer get best execution from the full range of brokers in the market,” said Joshua Maxey, managing director, Third Bridge, an independent research company in London.