IMA PUBLISHES MATRIX ON USE OF DEALING COMMISSIONS

The Investment Management Association (IMA) has today published a matrix which provides a snapshot as at March 2009 of practices across the industry showing what services are paid for out of client commissions charged on trade executions and which functions within firms pay for and use those services. 

The matrix reflects existing practices amongst investment management firms who participated in a survey conducted through the Information Providers User Group (iPUG) and is designed to assist firms in their decision making. It is intended that the matrix be updated on a regular basis as more firms contribute and as practice changes.

Commenting, Guy Sears, Director of Wholesale at IMA, said:

"Whether any service can be paid for out of client commission is a regulatory and commercial decision; and the fact that no or very few firms may pay for a service does not prevent a firm determining for itself that it can do so.  The matrix is designed to help a firm ensure that its analysis that leads to such a decision is robust and whether re-consideration of previous decisions may be necessary."

Hardeep Rai, Chairman of iPUG, said:

"The firms that contributed to the matrix concluded that it was a valuable exercise and have found the matrix to be a useful resource."

A copy of the matrix can be viewed here.

-ENDS-

1. The Matrix is not guidance and does not suggest that any particular service should or should not be paid for from dealing commissions. 
2. About Investment Management Association (IMA) IMA is the trade body for the UK's £3.4 trillion asset management industry. The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs. Its role is to represent the industry and promote high standards.
3. iPUG is the UK's leading Market Data Industry Body. Further details on iPUG can be found at http://www.ipug.org/.

For further information, please contact:
Noreen Shah, Press Officer, IMA, 0207 831 0898
Mona Patel, Head of Communications, IMA, 07834 089332