CP24/7: Payment Optionality for Investment Research

Read CP24/7 (PDF)

Why we are consulting 

We want to give UK buyside firms – asset managers and others – greater flexibility on how they can purchase investment research. 

To do this we are proposing a new regime which would allow the ‘bundling’ of payments for third-party research and execution services, subject to our proposed guardrails.

This option would exist alongside those already available.

Who this is for 

Our proposals are potentially relevant to: 

• investment firms and market operators in the UK
• asset managers
• institutional investors such as pension schemes
• insurance firms
• banks providing investment services
• persons providing research that we do not authorise

Next steps 

Online response form 

Please send us your comments on our proposals by 5 June 2024, using our response form or by email.

We will consider your feedback. If we choose to proceed, we would aim to publish any rules or guidance in a policy statement in the first half of 2024.

Background 

As part of the UK government’s Edinburgh Reforms to drive growth and international competitiveness in UK financial services, the government requested an independent review of the investment research market. 

In July 2023, the review team, chaired by Rachel Kent, published the Investment Research Review (IRR), setting out a series of recommendations to improve the investment research market.

This consultation is our response to recommendation 2 in the IRR, on creating an option for paying for research using a bundled payment for trade execution and research.