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FCA publishes policy statement PS25/4 on joint payment option for investment research

Published on: 09 May 2025
Published by LNB News

LNB News 09/05/2025

Document Information

Issue Date: 09 May 2025

Published Date: 09 May 2025

Jurisdiction(s): England, Northern Ireland, Scotland and Wales

Article summary

The Financial Conduct Authority (FCA) has published policy statement PS25/4, finalising new rules to refine the investment research market by allowing fund managers to combine research and execution costs under a joint payment option, subject to defined guardrails. These changes implement recommendations from the 2023 UK Investment Research Review and feedback from consultation paper CP24/21. As the adoption of the joint payment option is classified as a significant change for authorised funds, fund managers will be required to notify unitholders and seek approval from the FCA before adopting the option. The measures aim to enhance the competitiveness of UK fund managers and reduce research procurement costs. Under the new rules, fund managers are expected to implement written policies on their approach to joint payments, establish research budgets, allocate research costs equitably, and provide detailed disclosures regarding joint payments.

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