Use of dealing commission


The effective use of good quality research is of benefit to our pension fund members – the clients of investment managers – as they should benefit from the improved performance emanating from the use of this research in what is a highly competitive market. Furthermore, it is self-evidently in the interests of pension fund clients of investment managers that there is a competitive research market providing coverage of small and large cap stocks in local and global markets.

The Pensions and Lifetime Savings Association is of the view that the current model for paying for research leads to the creation of too many conflicts of interests, an over-use of and over-supply of external research – not all of which is necessarily value-added – and a significant lack of transparency to clients.