FCA proposals point governance liability directly at global investors. This proposal will be up for consultation until January 4, 2017. Throw in MiFID II best execution requirements drawing closer, firms will have a narrowing window to improve data collection and implement an independent TCA framework.
FCA proposes complete transparency on pension scheme transaction costs
“To ensure consistency across the market, the FCA also proposes that the calculation uses a methodology for evaluating transaction costs, called the slippage cost. This compares the price at which a transaction was actually executed with the price when the order to transact entered the market. The time an order enters the market should be captured by an order management system and this time can then be used to identify the price of the asset.”
“Firms who are unable to provide transaction cost information for all of the assets in a scheme will have to disclose this clearly to the governance body with an explanation of why it has not been possible to provide the information.”
FCA fines Aviva £8.2m for ‘serious’ failures to protect client assets